Nykaa, a leading beauty and personal care platform founded by Falguni Nayyar, has allocated 3.08 lakh equity shares to its employees under its ESOP (Employee Stock Option Plan) scheme. This strategic move highlights Nykaa’s ongoing efforts to reward and retain its workforce in the highly competitive beauty industry.
Valuation of Newly Allotted Shares
The newly allotted shares are priced at Rs 193 each, as per the National Stock Exchange (NSE) listing, bringing the total valuation of this ESOP allocation to approximately Rs 5.94 crore. These new shares hold equal status (pari passu) with Nykaa’s existing shares, providing employees with the same rights and benefits.
Nykaa ESOP Scheme
This isn’t the first time Nykaa has offered ESOP equity to its employees under this scheme. Earlier in the fiscal year, the company granted 4.05 lakh shares before releasing its Q4 FY 2024 results. Additionally, Nykaa allotted 4.73 lakh shares in June and 1.73 lakh shares in July, reinforcing its commitment to engaging employees and promoting loyalty through ownership stakes.
Expected Revenue Growth
While Nykaa faced a subdued demand during the first half of FY 2024, the company remains optimistic about its future growth. Nykaa forecasts revenue growth in the “mid-twenties” for the second quarter of FY25, fueled by anticipated increased consumer spending during the festive and wedding seasons, which historically boost sales in the beauty and personal care market.
Performance Amid Competition
Nykaa has demonstrated strong performance, reporting mid-twenties growth in both net revenue and net sales value for its beauty segment. The company’s Gross Merchandise Value (GMV) has also shown higher growth. Nykaa continues to face competition from major players like Reliance-backed Tira and Abu Dhabi Investment Authority-backed Purplle, but its strategic actions, such as this ESOP allocation, underscore the company’s focus on maintaining a motivated team to ensure sustained success.
