Nykaa Allots Shares Worth ₹32 Lakh Under ESOP Scheme

Nykaa Allots Shares Worth ₹32 Lakh Under ESOP Scheme

Falguni Nayar-led beauty and lifestyle platform Nykaa has granted 17,010 equity shares under its Employee Stock Option Plan (ESOP), with a total value of approximately ₹32.3 lakh, marking its second such allotment in 2025.

The company confirmed the development through a stock exchange filing, stating that the allotted shares “shall rank pari-passu with the existing equity shares of the company in all respects.” The valuation is based on Nykaa’s recent opening share price of ₹190.

ESOPs continue to be a popular tool among startups and public companies alike, allowing them to attract, retain, and incentivize key talent by offering a stake in the company’s potential upside. As Nykaa evolves within the competitive e-commerce and beauty segment, such measures also align employee interests with long-term company performance.

Consistent ESOP Activity Reflects Talent Strategy

This is the second ESOP-related allotment for Nykaa this year. Earlier in February, the company granted 90,500 equity shares under the same scheme, valued at around ₹1.49 crore. Nykaa was also active on this front throughout 2024, with notable issuances including:

• October 2024: 3.08 lakh shares

• November 2024: 1.80 lakh shares

• Q4 2024 (Oct–Dec): Total of approximately 4.8 lakh shares

In 2023, FSN E-Commerce Ventures, Nykaa’s parent entity, had also allotted:

• 4.05 lakh shares in May

• 4.73 lakh shares in June

• 1.73 lakh shares in July

This consistent use of ESOPs highlights the company’s focus on rewarding performance and building long-term loyalty within its workforce.

ESOP Trend Gains Momentum Across the Sector

Nykaa isn’t alone in its approach. Honasa Consumer, the parent company of personal care brand Mamaearth, also made headlines recently by issuing 24.16 lakh stock options under its ESOP-2018 scheme—valued at approximately ₹57 crore.

Such developments point toward a growing trend in India’s consumer and digital commerce sector: companies are increasingly leveraging stock-based compensation as a strategic tool to retain top talent and align growth objectives.

Final Take

As Nykaa continues to solidify its leadership in India’s beauty e-commerce space, strategic ESOP allotments play a key role in fostering a culture of ownership among employees. With the market evolving rapidly, such incentives could provide companies like Nykaa a critical edge in attracting and retaining talent in a competitive landscape.