Nykaa, a leading beauty and fashion ecommerce platform, has granted 4.05 Lakh stock options under its Employee Stock Option Policy (ESOPs) scheme ahead of its earnings call for the quarter and year ending March 31, 2024 (FY24).
Based on the opening price of INR 176.75 on May 21, the allocated stocks’ valuation could be approximately INR 7.15 Cr.
This comes nearly two years after the company’s last major employee stock option grant. Under Nykaa’s ESOP 2022 scheme, 16 lakh shares were granted to its employees, along with 4 lakh units under the Stock Unit Plan, 2022.
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Employees who received stocks could exercise their rights at the face value of Nykaa shares on the grant date, provided they did so within 90 days of issuance, according to the company’s prior disclosure regarding the Stock Unit Plan.
By allotting new stock plans, the company joins the ranks of startups using this strategy to enhance their employer brand profiles, which have suffered significant damage due to multiple mass layoffs reported within the ecosystem.
Data indicates that approximately 55% of founders are relying on ESOPs to attract the Indian workforce back to the startup ecosystem in 2024.
This trend has led numerous companies to allocate stock options to their workforce. For example, the logistics unicorn Delhivery disclosed the issuance of 75,000 stock options through its ESOP 2012 program just last week. Likewise, notable players such as Paytm, Cartrade, PocketFM, Spinny, and Cred have recently extended stock grants to a larger portion of their employees over the past few months.
For the Falguni Nayar-led beauty marketplace and house of brands, the announcement of ESOPs comes as it prepares to reveal its financial results for Q4 FY24 and FY24. Nykaa expresses confidence in reporting robust growth for the quarter.
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In April, the company projected a “mid-twenties YoY” increase in revenue for the entire financial year 2024. It also forecasted “early thirties” growth in gross merchandise value (GMV).
In its last disclosed financials for Q3 FY24, the company witnessed a notable surge in its net consolidated profit, more than doubling to INR 17.4 Cr compared to the INR 8.5 Cr profit recorded in the same quarter of the previous year. Furthermore, its operating revenue experienced significant growth, increasing by 22% to INR 1,788 Cr in the reported quarter from INR 1,462 Cr posted in Q3 FY23.
Continue Exploring: Nykaa continues strong growth trajectory: Q3 net profit doubles YoY to INR 17.4 Cr