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Nykaa Grants 4.05 Lakh ESOPs Ahead of Q4 Results

• ByStartupStory     |    May 22, 2024

Beauty and wellness e-commerce giant Nykaa has announced the granting of 4.05 lakh stock options under its Employee Stock Option Policy (ESOP) scheme. This strategic move comes just ahead of the company’s anticipated fourth-quarter financial results, set to be released tomorrow.

In an official exchange filing with the Bombay Stock Exchange (BSE), FSN E-Commerce Ventures Limited, Nykaa’s parent company, disclosed, “The Nomination and Remuneration Committee of FSN E-Commerce Ventures Limited (‘Company’) on May 20, 2024 has granted 4,05,000 stock options under Employee Stock Option Schemes of the Company.” Based on the current trading price of Rs 176 per share, these stock options are valued at approximately Rs 7.13 crore.

Nykaa, which made its debut on the domestic stock exchanges on November 11, 2021, initiated its ESOP scheme in October 2022. The move to grant these stock options is part of the company’s strategy to attract and retain talent in a competitive market.

Nykaa is not alone in leveraging ESOPs as a tool to incentivize employees. Recently, food delivery giant Zomato, led by Deepinder Goyal, announced plans to create an additional ESOP pool of 18.26 crore employee stock options. This new pool, which represents about 2% of Zomato’s outstanding share capital on a fully diluted basis, is intended to cover the needs of the company’s workforce, particularly the senior management of Blinkit, over the next five years.

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