Nykaa's bonus shares issue, ESOP plan get shareholders nod
1 min read 03 Nov 2022, 12:30 PM ISTNykaa last month announced that its board approved the issuance of bonus shares in the ratio of 1:5
PremiumFSN E-commerce Ventures Ltd, which runs the online fashion retailer Nykaa, on Thursday announced that the company has received approval from shareholders on the bonus shares issue and new employee stock options (ESOP) and employee stock unit plan (RSU) with an overwhelming majority.
“The board on October 3, 2022, approved Bonus Issue of Equity Shares in the proportion of five fully paid-up Equity Shares for every one fully paid-up equity share each held by the shareholders of the company. 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% of the voting in favour of the Bonus Resolution," Nykaa informed in an exchange filing today.
“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 and October 3 approved the introduction of the Employee Stock Option Plan 2022 & Employee Stock Unit Plan 2022.
“Pursuant to this, the company held a postal ballot for Employee Stock Option Plan 2022 & 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," it added.
Under the ESOP plan, Nykaa said that the total number of options to be granted shall not exceed 16,00,000 (Sixteen Lakhs only), being 0.334% 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 total number of Units to be granted shall not exceed 4,00,000 (Four Lakhs only), being 0.084% 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.
