Nykaa Allocates 3.08 Lakh Equity Shares Under ESOP Scheme Nykaa's recent ESOP issuance continues its proactive employee engagement strategy, following earlier grants of 4.05 lakh ESOPs and share allotments of 4.73 lakh and 1.73 lakh in June and July.
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In a recent exchange filing, Nykaa, the prominent beauty and personal care marketplace led by Falguni Nayyar, announced the allotment of 3.08 lakh equity shares under its employee stock option plan (ESOP) schemes.
This strategic move reflects the company's ongoing commitment to incentivize and reward its employees as it navigates a competitive landscape in the beauty industry.
The newly allotted shares will rank pari passu—meaning they hold equal status—with the existing equity shares of Nykaa. With the shares priced at an opening value of INR 193 apiece on the National Stock Exchange (NSE), the total valuation of this allotment reaches approximately INR 5.94 crore.
This ESOP issuance follows a series of similar actions earlier in the fiscal year, where the company granted 4.05 lakh ESOPs before announcing its fourth-quarter FY 2024 results. Additionally, Nykaa allotted 4.73 lakh shares in June and 1.73 lakh shares in July, underscoring its proactive approach to employee engagement and retention.
Despite facing a subdued demand environment in the first half of the financial year, Nykaa anticipates "mid-twenties" revenue growth during the second quarter of FY25. The company's optimism is fueled by expectations of a gradual revival in consumer spending, particularly during the festive and wedding seasons, which historically drive increased purchases in the beauty and personal care sector.
In its latest updates, Nykaa reported mid-twenties growth in both net revenue and net sales value for its beauty segment, with gross merchandise value (GMV) exhibiting even higher growth rates. As Nykaa competes with formidable rivals such as Reliance-backed Tira and Abu Dhabi Investment Authority-backed Purplle, its strategic initiatives, including the ESOP allocation, highlight the company's focus on maintaining a motivated workforce and ensuring sustained growth.
