The beauty and fashion ecommerce firm granted 4.05 lakh stock options under its Employee Stock Option Policy (ESOP) scheme. The stocks allotted might be valued at roughly INR 7.15 crore based on the stock’s opening price of INR 176.75 on May 21. The ESOP news comes a day before the company is set to disclose its financial results for Q4 FY24 and FY24.
Nykaa, a beauty and fashion ecommerce company, said on May 20 (Monday) that it had given 4.05 lakh stock options under its Employee Stock Option Policy (ESOPs) program, ahead of its earnings call for the quarter and year ended March 31, 2024.
The valuation of the authorized stocks might be roughly INR 7.15 crore based on the stock’s opening price of INR 176.75 on May 21.
The company’s most recent significant employee stock option issuance was approximately two years prior to the ESOP allotment disclosure. Nykaa’s ESOP 2022 scheme offered its employees 16 lakh shares and 4 lakh units under the Stock Unit Plan, 2022.
The employees who acquired stocks under the company’s former disclosed Stock Unit Plan were able to exercise their rights at the face value of Nykaa shares as per grant data within ninety days of the issue.
After multiple mass layoffs were disclosed within the ecosystem, the company suffered significant damage to its employer brand. Now, it is part of the ranks of companies using this method to improve their employer brand profiles.
This has resulted in numerous organizations providing stock options to their staff. For example, this week, logistics unicorn Delhivery announced the allocation of 75,000 stock options under its ESOP 2012. Similarly, businesses such as Paytm, Cartrade, PocketFM, Spinny, and Cred, among others, have distributed more company stock to their employees in recent months.
The ESOP news comes a day before Falguni Nayar’s beauty marketplace and brand house is due to release its financial results for Q4 FY24 and FY24. Nykaa remains confident in posting solid growth in the quarter.
The company stated in April that it expects sales growth for the entire fiscal year 2024 to be in the “mid-twenties YoY” range. It also claimed a “early thirties” increase in gross merchandise value (GMV).
The company’s net consolidated profit more than doubled to INR 17.4 Cr in the third quarter of FY24, up from INR 8.5 Cr in the previous year. Its operational revenue increased by 22% to INR 1,788 crore in the reporting quarter from INR 1,462 crore in Q3 FY23.
