SUMMARY
The company will grant 16 Lakh shares to its employees under the ESOP Plan, 2022 and 4 Lakh units under the Stock Unit Plan, 2022
Nykaa ‘s board also approved issuance of bonus shares of the company in the ratio of 5:1
Both the decisions will be subject to approval from the company’s shareholders
The board of FSN Ecommerce Ventures, the parent of beauty ecommerce platform nykaa
, has approved the formulation and implementation of the employee stock option plan 2022 (‘ESOP 2022’) and Stock Unit Plan to grant stock options/units to eligible employees of the company.
Under the ESOP 2022 scheme, it will grant a maximum of 16 Lakh options to eligible employees of Nykaa, its group company (under the FSN label), including subsidiary and associate companies within or outside India.
Similarly, it will grant a maximum of 4 Lakh units under the Stock Unit Plan, 2022, the company said in an exchange filing.
Employees, who receive units under the Stock Unit Plan, can exercise their rights within 90 days of the issue at the face value of shares of Nykaa as on grant data.
Under the ESOP plan, the exercise period is a maximum of one year and the value of the ESOP will carry a 20% discount on either the market price mentioned during the grant or 15-days’ closing average before the day of the grant.
Previously, Nykaa had two ESOP plans – the 2012 and the 2017 ones.
The company’s board also approved issuance of five fully paid-up bonus equity shares for every one fully paid-up equity share to the shareholders of the company.
After the announcement, Nykaa shares soared nearly 11% to the day’s high of INR 1,411.80 on the BSE . However, they gave up some of the gains to close 2.44% higher at INR 1,304.90 on the BSE.
Despite the jump in share price today, the stock is trading 35% lower year-to-date and 38% lower from its listing price.
The issuance of bonus shares and implementation of ESOP and Stock Unit Plan 2022 will be subject to approval from the shareholders, the filing said.
Nykaa reported a net profit of INR 5 Cr in the June quarter of FY23.
