Ahead͏͏ of͏͏ its͏͏ quarterly͏͏ financial͏͏ disclosures,͏͏ beauty͏͏ and͏͏ fashion͏͏ ecommerce͏͏ major͏͏ Nykaa͏͏ has͏͏ allotted͏͏ 3.08͏͏ Lakh͏͏ equity͏͏ shares͏͏ to͏͏ its͏͏ employees͏͏ under͏͏ its͏͏ employee͏͏ stock͏͏ option͏͏ plan͏͏ (ESOP)͏͏ schemes.
In͏͏ an͏͏ exchange͏͏ filing,͏͏ Nykaa͏͏ confirmed͏͏ that͏͏ the͏͏ newly͏͏ allotted͏͏ shares͏͏ will͏͏ rank͏͏ “pari-passu”͏͏ with͏͏ its͏͏ existing͏͏ equity͏͏ shares͏͏ in͏͏ all͏͏ respects.͏͏ For͏͏ those͏͏ unfamiliar,͏͏ pari͏͏ passu͏͏ refers͏͏ to͏͏ “ranking͏͏ equally͏͏ and͏͏ without͏͏ preference.”
ESOPs Valued͏͏ at͏͏ INR͏͏ 5.92͏͏ Cr:
The͏͏ allotted͏͏ ESOPs͏͏ are͏͏ valued͏͏ at͏͏ approximately͏͏ INR͏͏ 5.92͏͏ Cr,͏͏ based͏͏ on͏͏ the͏͏ stock’s͏͏ last͏͏ closing͏͏ price͏͏ of͏͏ INR͏͏ 192.15.
It’s͏͏ worth͏͏ noting͏͏ that͏͏ Nykaa͏͏ conducted͏͏ a͏͏ similar͏͏ exercise͏͏ ahead͏͏ of͏͏ its͏͏ Q4͏͏ FY24͏͏ financial͏͏ disclosures.͏͏ The͏͏ company͏͏ has͏͏ carried͏͏ out͏͏ several͏͏ ESOP-related͏͏ actions͏͏ throughout͏͏ this͏͏ year.
Previous͏͏ ESOP Allocations:
In͏͏ September,͏͏ Nykaa͏͏ allotted͏͏ 7.65͏͏ Lakh͏͏ equity͏͏ shares͏͏ to͏͏ employees͏͏ under͏͏ various͏͏ ESOP͏͏ schemes.͏͏ Earlier,͏͏ in͏͏ July,͏͏ it͏͏ allotted͏͏ 1.73͏͏ Lakh͏͏ shares,͏͏ followed͏͏ by͏͏ 4.73͏͏ Lakh͏͏ in͏͏ June.͏͏ In͏͏ May,͏͏ the͏͏ beauty͏͏ and͏͏ personal͏͏ care͏͏ (BPC)͏͏ giant͏͏ granted͏͏ 4.05͏͏ Lakh͏͏ stock͏͏ options͏͏ to͏͏ its͏͏ employees.
Continue͏͏ Exploring:͏͏ Nykaa issues͏͏ equity͏͏ shares͏͏ worth͏͏ INR͏͏ 15.9͏͏ Cr͏͏ under͏͏ ESOP schemes
In͏͏ its͏͏ quarterly͏͏ update͏͏ for͏͏ the͏͏ quarter͏͏ ended͏͏ September͏͏ 30,͏͏ Nykaa͏͏ indicated͏͏ that͏͏ it͏͏ expects͏͏ strong͏͏ revenue͏͏ growth͏͏ for͏͏ the͏͏ period.͏͏ The͏͏ company͏͏ reported͏͏ a͏͏ consolidated͏͏ net͏͏ revenue͏͏ increase͏͏ in͏͏ the͏͏ “mid-twenties”͏͏ for͏͏ the͏͏ second͏͏ quarter͏͏ (Q2)͏͏ of͏͏ the͏͏ current͏͏ financial͏͏ year͏͏ 2024-25͏͏ (FY25).
“The͏͏ omnichannel͏͏ retail͏͏ business,͏͏ owned͏͏ brands,͏͏ and͏͏ eB2B͏͏ distribution͏͏ business͏͏ demonstrated͏͏ strong͏͏ overall͏͏ performance͏͏ ahead͏͏ of͏͏ the͏͏ festive͏͏ season.͏͏ Dot͏͏ &͏͏ Key,͏͏ a͏͏ new͏͏ age͏͏ skincare͏͏ brand,͏͏ is͏͏ experiencing͏͏ rapid͏͏ growth,͏͏ with͏͏ Nykaa͏͏ increasing͏͏ its͏͏ ownership͏͏ to͏͏ 90%͏͏ at͏͏ the͏͏ start͏͏ of͏͏ this͏͏ financial͏͏ year,”͏͏ the͏͏ company͏͏ stated.
Nykaa’s͏͏ consolidated͏͏ net͏͏ profit͏͏ surged͏͏ by͏͏ 152%͏͏ to͏͏ INR͏͏ 13.6͏͏ Cr͏͏ in͏͏ Q1͏͏ FY25,͏͏ up͏͏ from͏͏ INR͏͏ 5.4͏͏ Cr͏͏ in͏͏ the͏͏ same͏͏ quarter͏͏ of͏͏ the͏͏ previous͏͏ fiscal͏͏ year.͏͏ Operating͏͏ revenue͏͏ rose͏͏ by͏͏ 22.8%͏͏ to͏͏ INR͏͏ 1,746.1͏͏ Cr͏͏ in͏͏ the͏͏ reported͏͏ quarter,͏͏ compared͏͏ to͏͏ INR͏͏ 1,421.8͏͏ Cr͏͏ in͏͏ Q1͏͏ FY24.
This͏͏ development͏͏ comes͏͏ as͏͏ both͏͏ listed͏͏ and͏͏ unlisted͏͏ startups͏͏ are͏͏ increasingly͏͏ allotting͏͏ company͏͏ shares͏͏ to͏͏ their͏͏ employees.͏͏ Recently,͏͏ listed͏͏ dronetech͏͏ startup͏͏ ideaForge͏͏ allocated͏͏ 3,936͏͏ equity͏͏ shares͏͏ under͏͏ its͏͏ ESOP͏͏ 2018͏͏ plan.
Other͏͏ companies͏͏ that͏͏ have͏͏ engaged͏͏ in͏͏ ESOP-related͏͏ activities͏͏ this͏͏ month͏͏ include͏͏ Delhivery,͏͏ Tracxn,͏͏ WinZo,͏͏ Zaggle,͏͏ and͏͏ Zomato,͏͏ among͏͏ others.
