Nykaa Allots 1.01 Lakh Equity Shares Under ESOP Schemes

Beauty and fashion major Nykaa has allotted 1,01,350 equity shares under its employee stock option schemes (ESOP).

In an exchange filing today, the company said that the equity shares have been allotted pursuant to the exercise of vested stock options by the employees under ESOP schemes.

“The equity shares so allotted, shall rank pari-passu with the existing equity shares of the company in all respects,” the filing said.

Shares of Nykaa ended today’s trading session 1.8% higher at INR 167.80 apiece on the BSE. Based on the closing price, the newly allotted equity shares are worth over INR 1.70 Cr.

The company’s market capitalisation currently stands at INR 47,976.56 Cr (about $5.56 Bn).

The development comes three weeks after the Falguni Nayar-led company allotted 90,500 equity shares under ESOP schemes. Prior to that, it allotted 56,750 equity shares, in January.

Meanwhile, the company also saw a top-level exit recently, with Nykaa Fashion’s chief executive Nihir Parikh stepping down citing personal commitments in December 2024.

On the financial front, Nykaa’s consolidated net profit surged 51% to INR 26.4 Cr in Q3 FY25 from INR 17.5 Cr in the year-ago period. Revenue from operations jumped 26.7% to INR 2,267.2 Cr in the quarter under review from INR 1,788.8 Cr in Q3 FY24.

In the light of its strong quarterly performance, brokerage JM Financial retained its ‘BUY’ call on the stock, citing the company’s ability to deliver robust growth in a tepid demand environment.

Meanwhile, Bernstein maintained its ‘market-perform’ rating on the stock, even as it expects margin to expand gradually due to continued investments, driven by profitability improvement in its fashion and B2B businesses.

Amid the rising popularity of quick commerce, Nykaa has also been working on providing 10-minute deliveries on select SKUs in a few cities.