Online fashion retailer Myntra is expected to announce its acquisition by e-commerce leader Flipkart later today. We take a look at the shareholding structure of the company based as reported at the end of FY13.
Who gained shares in FY13
Myntra had raised around $25 million investment from existing investors Tiger Global and Accel Partners among others in FY13. These firms got 2,476,026 and 4,622,077 shares respectively. According to the disclosure these were 0.01% cumulative compulorily convertible preference shares.
Among equity share holders Mukesh Bansal and Vineet Saxena divested 96,689 and 66,875 shares of face value Rs 1 each. Myntra had acquired Exclusively.in in the same time frame and this company was given 1,601,436 equity shares.
In the case of Vector E-Commerce Private Limited, another company that is involved in the operations of Myntra, Bishnu Prakash Hazari had 1,05,000 shares which add up to 40% of the equity shares, while Raghunath I had 1,55,000 shares which account for 60% of equity shares.
Foreign holdings controlled 34% equity shares of Myntra Designs Pvt Ltd in 2013, while directors and relatives accounted for 53% of the company. Other investors control 13% of the company. Myntra has issued other forms of shares as mentioned above, for raising money from foreign investors and investment firms.
Myntra Financials in FY13
The company had reported a loss after tax of Rs 134.7 crore for FY13. Myntra had also announced that it invested Rs 13.74 crore in its subsidiary during the financial year, without mentioning the name of the subsidiary. It is worth noting that Myntra had incorporated a subsidiary in Delaware, with the name MYNTRA, INC. Myntra Designs Pvt Ltd has 25,00,000 shares of this subsidiary, that has an equity share capital of Rs 13,74,45,000.
Vector E-commerce Pvt Ltd, reported sales revenue of Rs 263.50 crore in FY13 as opposed to Rs 64.94 crore in FY12. It also reported a loss after tax of Rs 2.59 crore in FY13 down from Rs 3.51 crore in FY12.
The auditor pointed out in the financial statement that Myntra’s accumulated losses at the end of the financial year are more than fifty percent of its net worth. It had incurred cash losses in the current and immediately preceding financial year.
Change in board during FY13
– Sudhir Kumar Sethi resigned from board on April 17, 2013
– Sudhir Kumar Sethi joined back as the director on December 5, 2013
– Vani Kola resigned as director on December 5, 2013
– Prabhakar Sunder and Ashutosh resigned as directors from Vector and Bishnu Prakash Hazari and Raghunath I were appointed in their place.