Nykaa Gets Approval on New ESOP and RSU with Majority
Nykaa Gets Approval on New ESOP and RSU with Majority

The board of the lifestyle retailer FSN E-Commerce Ventures Limited (Nykaa), on October 3, 2022, approved a Bonus Issue of Equity Shares in the proportion of 5 (Five) fully paid-up Equity Shares of Rs 1/- each for every 1 (One) fully paid-up Equity Share of Rs 1/- each held by the shareholders of the company, subject to shareholders’ approval. 

Pursuant to this, the company held a postal ballot for the issue of Bonus Shares out of its securities premium reserves from October 4, 2022, to November 2, 2022. The company received an overwhelming response from its shareholders and witnessed 100 percent of the voting in favor of the Bonus Resolution.

The company believes that Bonus Shares will encourage the participation of retail investors in the long term, as well as see a wider shareholding.

Additionally, in line with Nykaa’s aim to attract and retain the right talent pool and build long-term incentive structures, The Nomination and Remuneration Committee of the Directors and the Board of Directors of the Company at their respective meetings held on September 30, 2022, and October 3, 2022, have approved the introduction of the Employee Stock Option Plan 2022 and Employee Stock Unit Plan 2022 subject to shareholders’ approval. Pursuant to this, the company held a postal ballot for Employee Stock Option Plan 2022 and Employee Stock Unit Plan 2022 from October 4, 2022, to November 2, 2022.

The new ESOPS and Stock Unit Schemes will be applicable to employees of the Company and its group of companies – including its subsidiaries and associate companies.

Under the ESOP plan, the total number of Options to be granted shall not exceed 16,00,000 (Sixteen Lakhs only) (will be proportionally adjusted in case of any corporate action(s) such as bonus issue, etc.), being 0.334 percent 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. Shareholders approved the proposal of Employee Stock Option Plan 2022 with 92 percent voting in favor of the resolution. 

Under the RSU plan, the total number of Units to be granted shall not exceed 4,00,000 (Four Lakhs only) (will be proportionally adjusted in case of any corporate action(s) such as bonus issue, etc.), being 0.084 percent 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. Employee Stock Unit Plan 2022 received as many as 94 percent votes in favor of the resolution.

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