Nykaa Allots INR 15.9 Cr Worth Of Equity Shares Under ESOP Schemes

Beauty and fashion ecommerce startup Nykaa has allocated 7.65 Lakh equity shares under its employee stock option (ESOP) schemes. 

In an exchange filing, the startup said, “We wish to inform you that the Nomination and Remuneration Committee of FSN E-Commerce Ventures Limited (‘Company’) on September 12, 2024 has allotted 7,65,086 equity shares.” 

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

As per the closing price of Nykaa shares today, the total value of these 7.65 Lakh equity shares is about INR 15.9 Cr. The company’s shares ended today’s trading session 1.9% lower at INR 207.65 on the BSE.

Prior to this, Nykaa allotted INR 3.13 Cr worth of 1.73 Lakh equity shares in July. It also allotted 4.73 Lakh shares in June. 

Earlier today, Kotak Institutional Equities downgraded Nykaa to ‘sell’ from the earlier ‘add’ rating. The brokerage said that the startup’s focus on faster deliveries may negatively impact its EBITDA margin. Kotak also cut its fair value of the stock to INR 190 from INR 195 earlier.

Notably, Nykaa reported an operating revenue of INR 1,746.1 Cr and a net profit of INR 13.6 Cr in Q1 FY25. Its total gross merchandise value (GMV) increased 25% year-on-year (YoY) to INR 3,320.9 Cr.

The company’s EBITDA margin improved 34 basis points YoY to 5.5% during the quarter.

The latest development comes at the time when more than half of the founders are banking on ESOPs to attract employees to the startup ecosystem in 2024. As a result, an increasing number of new-age tech startups are offering ESOPs to their employees.

For instance, Tracxn allotted 1.8 Lakh equity shares earlier this month under its ESOP schemes, while Delhivery allotted 6.15 Lakh equity shares on Tuesday (10 September).