Nykaa, the fashion and beauty commerce start-up, has issued 7.65 lakh equity shares under its employee stock option (ESOP) scheme.
As per the company's exchange filing, the start-up informed that the nomination and remuneration committee of FSN E-commerce Ventures Limited allocated 7,65,086 equity shares on September 12, 2024.
The company announced that the equity shares were allocated following the exercise of vested stock options under its ESOP scheme.
Earlier in July, Nykaa allotted Rs 3.13 crore worth of 1.73 lakh equity shares. Prior to this, it allotted 4.73 lakh shares in June.
The total value of these 7.65 lakh equity shares stands at Rs 15.9 crore as per the closing price of Nykaa on September 12.
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Nykaa's shares ended the day on September 12 trading 1.9 per cent lower at Rs 207.65 on the BSE.
The development reportedly comes at a moment when more than half of the founders are relying on ESOPs to attract employees to the start-up ecosystem in 2024. This has increased the number of new-age startups offering ESOPs to their employees.
Kotak Institutional Equities reportedly downgraded Nykaa to 'sell' from the earlier 'add' rating. The fair value of the stock was cut from Rs 190 to Rs 195 earlier by Kotak.
The start-up's emphasis on faster deliveries may negatively affect its EBITDA margin, the brokerage said.
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Delhivery allotted 6.15 lakh equity shares on September 10, while Tracxn allotted 1.8 lakh equity shares under its ESOP schemes earlier this month.
Nykaa's EBITDA margin improved 34 basis points year-on-year to 5.5 per cent during the first quarter of FY25. Its operating revenue stood at Rs 1,746.1 crore with a net profit of Rs 13.6 crore in Q1 FY25.
The company's Gross Merchandise value stood at Rs 3,320.9 crore year-on-year, which is a 25 per cent increase.
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