Ecommerce

Nykaa Allots 4.73 Lakh Shares Under ESOP Scheme

• ByStartupStory     |    June 15, 2024

Cosmetics and beauty retailer Nykaa has allotted 4.73 lakh equity shares under its employee stock option scheme (ESOP). This move, announced on Friday, follows the recent granting of 4.05 lakh stock options under the same scheme less than a month ago.

Employee stock options serve as a significant component of remuneration for Nykaa employees, allowing the company to retain top talent and incentivize their performance by enabling them to grow their income as the company’s value appreciates. In an exchange filing, Nykaa noted, “equity shares so allotted, shall rank pari-passu with the existing equity shares of the Company in all respects.”

This week, Nykaa’s Board also made notable appointments and reappointments. Pradeep Parameswaran and Seshashayee Sridhara have been reappointed as independent directors for a second term of three years. Additionally, Santosh Desai has been appointed as an independent director for a three-year term starting July 15, 2024.

As the competition intensifies with Reliance-backed Tira, Nykaa is ramping up its fashion and international distribution strategies. The company recently announced a Rs 20 crore investment in FSN International during its fourth-quarter earnings report. Furthermore, Nykaa plans to invest up to $1.9 million through FSN International in Nyssa International, its omnichannel beauty platform based in the Gulf Cooperation Council (GCC) region.

Falguni Nayar-led FSN E-Commerce Ventures, the parent company of Nykaa, reported a significant financial uptick with a 67% rise in its annual consolidated net profit to Rs 32.2 crore for the year ended March 31, 2024. The company also logged a 24% year-on-year revenue growth, reaching Rs 6,385 crore.

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