Beauty and personal care marketplace Nykaa on Monday allotted 1.73 lakh equity shares under its Employee Stock Options Scheme (ESOP).
In a regulatory filing, it said, “Equity shares are allotted pursuant to the exercise of vested stock options by the employees.”
This is Nykaa’s third ESOP grant of this financial year. Nearly a month ago, it allotted 4.73 lakh equity shares under its ESOP, and in May, it granted 4.05 lakh stock options just one day before releasing its quarterly financial statements.
ESOPs serve as a form of compensation that enables companies to attract and retain top talent, while also providing employees the opportunity to increase their income as the company’s value appreciates.
Recently, Deepinder Goyal-led Zomato approved ESOPs grants of 40 million stocks. It had managed to scrape by majority approval for its ESOP expansion plan after nearly a fourth of investors voted against the motion.
The foodtech company had earlier mentioned in its quarterly earnings that it would undertake an ESOP pool of 18.26 crore employee stock options—about 2% of its outstanding share capital on a fully diluted basis.
Also, One97 Communications, the parent company behind Paytm, approved an allotment of 2.8 lakh equity shares under its ESOP programme.
Swiggy moved in a different direction and announced its fifth ESOP liquidity event of $65 million ahead of its public listing. It rolled out its second ESOP in July 2023 worth nearly $27-30 million (Rs 225.8 crore to Rs 250.9 crore) and also launched a committed two-year ESOP liquidity programme for employees in October 2021.
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FSN E-Commerce Ventures Ltd, the parent company of Nykaa, has projected an annual revenue growth of around 22-23% for Q1 FY25. It expects its beauty vertical’s GMV growth to be higher, in the high 20s YoY, reflecting the long-term growth trajectory of the beauty and personal care industry.
Nykaa is focusing on GCC expansion and established a new unit to sell BPC products in the Gulf region. It subscribed a share capital of Rs 1.14 crore for the newly incorporated company, with Nessa International holding 100% shareholding of the new unit. Nykaa currently holds a 55% stake in Nessa International.
Edited by Suman Singh
