FSN E-Commerce Ventures, which operates beauty and fashion retail brand Nykaa, has allotted 4,73,138 equity shares under its employee stock option plan (Esop), the company said in a stock exchange filing Friday.
The shares were allotted at a face value Rs 1 each.
The newly allotted shares are valued at nearly Rs 8.08 crore, based on the stock’s closing price of Rs 170.95 on the BSE Friday.
The Esop allotment coincides with the company’s annual investors and analysts day event held in Mumbai.
“Nykaa’s success so far has been rooted in driving quality growth by foreseeing the potential in the lifestyle ecosystem and making future-forward investments. Our conviction and efforts in beauty over the last decade are now reflected in a market bound to become a $90-billion market over the next 15 years, with Nykaa continuing its industry-leading growth,” managing director Falguni Nayar said at the event.
Earlier, on May 20, the Mumbai-based company had allotted 405,000 shares under its Esop scheme.
Companies issue shares to employees to attract and retain talent, align their interests with those of shareholders, and boost overall performance. Private startups often conduct buybacks of these shares to enhance employee wealth.
For the quarter ended March 2024, Nykaa reported a 187% jump in its consolidated net profit to Rs 6.9 crore, from Rs 2.4 crore in the same period last year. Revenue from operations in the reporting quarter rose 28% on year to Rs 1,668 crore.
During the quarterly earnings call with analysts earlier, Nayar said the company is embarking on a journey to add new businesses to expand its total addressable market (TAM).
Besides traditional firms, Nykaa competes with the likes of Sugar Cosmetics and Mamaearth in the beauty and personal care (BPC) segment.
