Flipkart Offers $50 Million Stock Buyback to Employees Ahead of Planned IPO

Flipkart is offering a $50 million stock buyback to employees, signaling confidence in its upcoming IPO. The company is allowing employees to cash out stock options worth millions of dollars in a liquidity event. About 7,000 employees are expected to benefit from the program, with payments due in August. Flipkart is currently valued at $36 billion and is planning to relocate its holding company from Singapore to India.

Flipkart, the Walmart-owned e-commerce giant, has announced a $50 million stock buyback program for its employees, signaling confidence in its upcoming initial public offering (IPO). The company is allowing approximately 7,000-7,500 employees to sell up to 5% of their vested stock options granted between July 2022 and July 2025. Each option will be repurchased at $174.32, with payments expected in August [1].

The buyback scheme is part of Flipkart's strategy to retain and reward core talent as it ramps up efforts on quick commerce and tightens execution across its e-commerce operations. The company is valued at $36 billion and is planning to relocate its holding company from Singapore to India. A second buyback window might open early next year if Flipkart achieves key performance targets approved by its board [1].

Meanwhile, Tata Consultancy Services (TCS), India's largest IT firm, has held off on salary hikes for now. The company has not firmed up its increment plans and will review the matter later in the year. This decision comes as TCS grapples with rising costs and an uncertain macro environment, leading to a cautious approach at the top. TCS's June quarter revenue rose by 1.3% year-on-year to Rs 63,437 crore, but net profit grew by 6% to Rs 12,760 crore. Voluntary attrition increased to 13.8%, indicating ongoing employee churn despite a broader slowdown in tech hiring [2].

The global AI talent war is heating up, with Google and Meta offering substantial compensation packages to lure top AI minds. Google has bumped base salaries for its top US engineers to as much as $300,000, while Meta is offering multi-year stock deals worth over $300 million at its new Meta Superintelligence Labs. However, many top researchers are declining these offers due to concerns about burnout and the company's relentless pace [1].

Capgemini is making a bold move by acquiring business process outsourcing (BPO) firm WNS for $3.3 billion. The acquisition aims to solidify Capgemini's push into the AI-powered BPO sector, challenging traditional BPO models and embedding automation and data-driven services. The global BPO market is estimated at approximately $300 billion, and analysts expect a new wave of consolidation as AI becomes more prominent [1].

Uber's India ambitions face a challenge from local competitor Rapido, which has gained significant traction with its affordable bike taxis. Rapido recorded 33 million app downloads last year, surpassing Uber's 21 million and Ola's 19 million. The startup is now profitable and plans to expand into smaller towns, although it faces legal risks and tax compliance issues [1].

In a separate development, ICICI Bank Limited has announced that its subsidiary, ICICI Prudential Asset Management Company, has filed a Draft Red Herring Prospectus (DRHP) for an IPO. The company is preparing for its IPO, with ICICI Bank planning to buy up to 2% of the company's pre-IPO share capital to maintain its majority ownership. The acquisition will be conducted at arm's length and is in line with ICICI Bank's existing business [2].

References:
[1] https://m.economictimes.com/tech/newsletters/tech-top-5/flipkart-announces-buyback-tcs-appraisals-still-elusive/articleshow/122389743.cms
[2] https://tradebrains.in/icici-bank-stock-in-focus-after-it-plans-to-buy-additional-2-stake-in-its-subsidiary-ahead-of-ipo/