The biggest news of the year from the e-commerce genre is finally here. Walmart has acquired Flipkart for $16 billion, i.e. around ₹1.12 lakh crore. Also, to delve deep, the US-based retailing giant has acquired 77 percent shares in the Indian e-commerce website, evaluating the 22-year old company at $20.8 billion, or ₹1.47 lakh crore, making this the biggest acquisition till date. To this, Walmart’s President and Chief Executive Officer Doug McMillon regarded during the occasion that, “India is one of the most attractive retail markets in the world, given its size and growth rate, and our investment is an opportunity to partner with the company that is leading transformation of eCommerce in the market”.

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More on the deal witnesses Sachin Bansal, who had co-founded the company with Binny Bansal in 2007, exiting the company. In fact, the deal is not so bad after all for Sachin Bansal, leaving the company with a little over ₹6700 crore. He has already resigned and now Binny Bansal is the new CEO. Sachin had 5.5 percent stake in Flipkart to his name. Now, with the company being valued at little over $20 billion in this deal and Walmart buying out his stake, he is probably getting little over $1 billion. This translates to little over ₹67 billion rupees, which clarifies that Sachin is walking out the Flipkart with ₹6700 crore.

While Sachin Bansal might be getting a handsome payout, both he and Binny Bansal would have to pay an income tax of 20 percent, which is a standard as far as the Indian law is concerned. To this, Transaction Square Founder Girish Vanvari added that “With regard to share purchase agreement entered into with India resident entity, Sachin Bansal and Binny Bansal in this case, capital gain would be charged in their hands and they have to pay 20 percent income tax,”. This means that after getting a tax cut, Sachin Bansal would get roughly ₹5360 crore for himself.

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Again, as far as rest of the company is concerned, as mentioned earlier, co-founder Binny Bansal is staying back. Further announcements state that Walmart would retain clear majority ownership, and Tencent and Tiger Global would continue on the board of Flipkart and that they would also be joined by new members from Walmart. In its final statement release, the company added that “The final make-up of the board has yet to be determined, but it will also include independent members. The board will work to maintain Flipkart’s core values and entrepreneurial spirit while ensuring it has strategic and competitive advantages”.