As Flipkart-Snapdeal merger moves to the final steps, problems keep arising for Snapdeal. A few days back, sellers had filed a petition asking to put a stay on the merger till their dues are cleared. Yet again, a group of former snapdeal employees have filed a petition seeking clarity over the distribution of ESOPs once the merger concludes.
The group of employees in question includes over 45 professionals who worked for over 3-4 years in middle management for Snapdeal and have now resigned from the company. All of these employees own around 10,000 stocks of snapdeal. According to reports, they are seeking legal options too to ensure their concerns are addressed.
The concern of these employees is the benefit investors will get from the first payout once merger happens. According to analysis, investors will be getting ₹25,000 per share, whereas, these employees have been informally told that they will be able to sell their shares at ₹5000 per share. In February 2016, when Snapdeal was at its peak and the investors had valued it at $6.5 Billion, rate of per share came close to ₹1.65 lakh. The merger is reportedly valuing Snapdeal at ₹6500 crores (₹1 Billion).
Speaking on the news, one of Snapdeal’s spokespersons stated that ESOPs will be paid out according to the discussed conditions. There will be no exception in case of any of the employees and they will be treated the same.
Snapdeal has offered ₹193 crores to its employees if the Flipkart deal goes through. According to sources, both the founders are expected to get $30 Million and they are planning to distribute half of that to the employees.