Nykaa Allots 1.73 Lakh Equity Shares Under ESOP Plan

Beauty and fashion ecommerce major Nykaa has allotted 1.73 Lakh equity shares to its employees under its employee stock option plan (ESOP) schemes.

“We wish to inform you that the Nomination and Remuneration Committee of FSN E-Commerce Ventures Limited (‘Company’) on July 15, 2024 has allotted 173,800 equity shares,” Nykaa said in an exchange filing. 

The company said that the equity shares were allotted pursuant to the exercise of vested stock options under ESOP schemes. 

As per the stock’s last closing, the newly-allotted shares have a cumulative value of INR 3.13 Cr.

The development comes nearly a month after Nykaa allocated more than 4.73 Lakh equity shares under the ESOP scheme. Prior to that, it granted 4.05 Lakh stock options under its ESOP scheme in May this year.

According to Inc42’s Indian Startup Founder Survey 2023, about 55% of founders are banking on ESOPs to attract the Indian workforce back to the startup ecosystem in 2024. This strategy has led many companies to allocate stock options to their employees. 

For instance, logistics unicorn Delhivery announced the allotment of 75,000 stock options under its ESOP 2012 just last week. A number of other startups, including Paytm, CarTrade, PocketFM, Spinny, and Cred, also granted shares to their employees in the past couple of months.

Meanwhile, Nykaa has projected a strong revenue growth of around 22-23% year-on-year for the first quarter of FY25. The company anticipates its gross merchandise value (GMV) to rise in the mid-twenties percentage range year-over-year.

As part of its Middle East push, Nykaa’s step-down subsidiary Nessa International Holdings recently incorporated a wholly-owned subsidiary in Qatar – Nysaa Cosmetics Trading.

Nykaa’s consolidated net profit rose 80% year-on-year to INR 69 Cr in FY24, while operating revenue grew 24% to INR 6,385.6 Cr.

Shares of Nykaa ended almost flat today at INR 180.45 on the BSE.