BackTop six employees of Nykaa set to make over ₹850 crore
They head various divisions in the IPO-bound online beauty and wellness products sellerOnline beauty products seller Nykaa aims to list at a little more than a $7 billion valuation
PremiumSix senior executives at Nykaa stand to make a total of more than ₹850 crore or $115 million through their shareholding and vested options as the company’s initial public offering (IPO) opens on 28 October.
The six executives head various divisions in the online beauty, wellness and fashion products seller.
Reena Chhabra, the chief executive officer of the company’s private label division FSN Brands, stands to make ₹250 crore with 2.1 million shares and 0.12 million employee stock options (ESOPs). Chhabra has been associated with FSN Brands since May 2016. The total remuneration paid to her in FY21 was ₹3.06 crore, according to the draft red herring prospectus (DRHP) filed by the company.
Nihir Parikh, chief executive officer Nykaa, Man Business, one of the arms of Nykaa E-Retail, holds more than 2 million shares and 0.12 million Esops worth ₹245 crore. He joined the firm in 2015 and drew a salary of ₹2.83 crore in FY21.
Sanjay Suri, the chief technology officer of Nykaa E-Retail, has 1.8 million shares and 0.15 million Esops, together worth ₹220 crore. Suri, who joined the firm in 2016, was paid ₹2.39 crore in FY21.
Manoj Jaiswal, the chief supply chain officer, Nykaa E-Retail, holds shares and options worth ₹63 crore, while Arvind Agarwal, the chief financial officer of the firm, has shares and options worth ₹45 crore. Gopal Asthana, the chief business officer of Nykaa Fashion, has shares and options worth ₹29 crore.
Nykaa, operated by FSN E-Commerce Ventures Pvt. Ltd, aims to list at a little more than a $7 billion valuation later this week. This is a significant jump from its last private trade, which the company struck at a valuation of about ₹9,300 crore ($1.25 billion) in November 2020.
At the time, Fidelity Management and Research LLP acquired the company’s shares from some early investors, according to the red herring prospectus. At this valuation, the net worth of the promoters through their group entities Sanjay Nayar Family Trust, Falguni Nayar Family Trust, Anchit Nayar Family Trust and Adwaita Nayar Family Trust is $3.83 billion.
At the IPO valuation, Hero Group founder Sunil Kant Munjal’s 2016 investment in the firm jumps 19-fold. His average cost of acquisition per equity share was ₹56.54 a share for ₹119 crore. At the IPO upper band price, Munjal is sitting on a stake worth ₹2,413 crore.
Narotam Sekhsaria, who has invested around ₹19 crore in the firm at an average cost price of ₹9.86 a share, will see his stake value surge more than 11,443% to ₹1,944 crore. Sekhsaria first invested in 2014.
PE firm TPG Growth, which invested around ₹191 crore in 2019 at an average cost of ₹117.67 a share has seen its stake grow by 868% to ₹1,853 crore.
Harindarpal Singh Banga and his wife Indra Banga were two of the earliest investors in Nykaa, having invested close to ₹25 crore cumulatively, between 2014 and 2016. Their current stake of 8.7% has an average purchase price of ₹7.32 per share, and at the current IPO valuation, it is worth ₹4,633 crore--a jump of over 190 times.
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