Cosmetics-to-fashion retailer Nykaa’s parent firm FSN E-Commerce Ventures on Thursday received the approval of shareholders on bonus issue, employee stock options (ESOP) and stock unit plan (RSU).
“The company received an overwhelming response from its shareholders and witnessed 100 per cent of the voting in favour of the bonus resolution,” Nykaa stated in an exchange filing. ‘Employee Stock Option Plan 2022’ and ‘Employee Stock Unit Plan 2022’ got 92 per cent and 94 per cent votes, respectively, in favour, it added.
Last month, the lifestyle retailer’s board approved a “bonus issue of equity shares in the proportion of five fully paid-up equity shares of Re 1 each for every one fully paid-up equity share of Re 1 each held by the shareholders of the company, subject to shareholders’ approval.”
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After today’s nod, Nykaa shareholders would get five bonus shares for every single share held.
Under the ESOP plan, Nykaa said the stock options to be granted would be limited to 16 lakh (0.334 per cent of the paid-up equity share capital of the company on a fully diluted basis as on the date of the adoption of the plan).
Under the RSU plan, the online fashion retailer said that stock units to be granted would be limited to 4 lakh (0.084 per cent of the paid-up equity share capital of the company).
It also stated that the new ESOP and stock unit schemes would be applicable to employees of the company and its group of companies – including its subsidiaries and associate firms.
Meanwhile, shares of the company slipped 0.31 per cent to trade at Rs 1,150.05 in today’s trade. The stock hit an intraday low of Rs 1,129.50 today.
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Further, Nykaa’s shareholder lock-in period would expire next week and around 67 per cent of the company’s shareholding (31 crore shares) would be released.
During a lock-in period, promoters and investors can’t liquidate the pre-initial public offering (IPO) securities held by them. Nykaa’s IPO was subscribed to nearly 82 times and got listed with a premium of 80 per cent.
Currently, the stock traded 56 per cent lower than its November 2021 high of Rs 2,574 when compared with today’s low.
