Business

Nykaa Just Gifted Shares Worth ₹32 Lakh to Employees — Here’s the Real Reason Behind It

  • April 21, 2025
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Is This Beauty Giant Rewarding Loyalty or Bracing for a Bigger Play? While most of us were just getting through another weekday, Nykaa—India’s beauty and fashion powerhouse—was quietly

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Nykaa Just Gifted Shares Worth ₹32 Lakh to Employees — Here’s the Real Reason Behind It

Is This Beauty Giant Rewarding Loyalty or Bracing for a Bigger Play?

While most of us were just getting through another weekday, Nykaa—India’s beauty and fashion powerhouse—was quietly making a move that could change the game for its employees.

The company’s parent, FSN E-Commerce Ventures, just handed out 17,010 equity shares under its Employee Stock Option Plan (ESOP). The catch? These shares are worth over ₹32.24 lakh.

This wasn’t a one-time bonus. It was something bigger—and it says a lot about where Nykaa is headed next.


What Really Happened?

In a regulatory filing, Nykaa confirmed that it had allotted 17,010 equity shares to employees who exercised their stock options. This means certain employees had the opportunity to convert their stock options—granted in the past—into real shares of the company.

And they didn’t hesitate.

Based on the stock’s closing price on April 17 (₹189.55 per share), the value of these new shares adds up to a massive ₹32.24 lakh.

Not a bad payday, especially when the shares could continue to grow in value.


Why Is Nykaa Giving Out Shares Now?

Sure, it sounds generous. But what’s really going on behind the scenes?

1. Employee Retention in a Competitive Market

India’s tech and startup talent pool is hotter than ever. Giving employees real ownership—actual pieces of the company—is a powerful way to keep them around and loyal.

ESOPs are no longer just perks. They’re golden handcuffs.

2. Rewarding Loyalty and Performance

These shares weren’t handed out randomly. They were earned—granted to employees who stuck around, performed, and now get to enjoy a piece of the pie.

It’s Nykaa saying: “We see your contribution, and we’re investing in your future.”

3. Internal Confidence in Growth

Let’s be real: employees don’t exercise stock options unless they believe those shares are worth something.

The fact that people at Nykaa are converting options into real shares says one thing loud and clear—they believe in where the company is headed.


What’s the Stock Doing?

As of 12:18 PM on the day of the announcement, Nykaa’s shares were up 1.5%, trading at ₹192.40 on the BSE. It’s a modest bump, but in a volatile market, any green is good.

This low-key allotment didn’t make front-page headlines, but it’s a strong signal to investors: internal faith is high.


So, What’s the Bigger Play Here?

This may seem like a behind-the-scenes move, but it’s actually part of a bigger narrative.

Nykaa isn’t just another D2C beauty brand. It’s now a public company, with growing pressure to perform, scale, and innovate. As competition heats up—from international brands to Indian challengers—Nykaa needs to lock in its top talent.

Giving out equity is how you build a team that stays, builds, and wins.


A Look Back at Nykaa’s Journey

From a scrappy startup to a beauty and fashion unicorn, Nykaa has always done things a little differently.

  • Founded by Falguni Nayar, a former investment banker who turned a beauty idea into a billion-dollar empire
  • One of the few profitable startups in India to go public
  • Constantly evolving—from beauty to fashion, and now into wellness and homecare

Every step in its journey has been strategic—and rewarding employees with equity is no different.


What This Means for Other Startups

Nykaa isn’t just handing out shares. It’s setting a precedent.

In a world where hiring and retaining talent is harder than ever, startups that want to scale need to take a page out of this playbook.

Don’t just pay people—make them owners.

Ownership changes the way people show up. It turns jobs into missions.


Final Take: Small Move, Big Message

This wasn’t a flashy headline. There was no glitzy announcement. But what Nykaa just did could ripple through India’s startup world.

By rewarding loyalty and locking in talent with real equity, Nykaa is showing that even in a competitive, fast-moving market, investing in people is still the smartest move.

And if you’re watching this space closely, it’s a sign: something bigger is coming.



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