Nykaa’s top-6 employees to make Rs 850- crore windfall

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IPO-bound Nykaa’s six senior executives stand to make about Rs 850 crore through their shares and vested options, says a report. The retail brand’s initial public offer opens on October 28. Nykaa, which is run by FSN E-Commerce Ventures Pvt. Ltd is going public at a valuation of little over $7 billion.

The six executives are in charge of various divisions inside the online retailer of beauty, wellness and fashion products.

With 2.1 million shares and 0.12 million employee stock options, Reena Chhabra, the CEO of the company’s private-label business, FSN Brands, can make Rs 250 crore, says a report in the Mint. Chhabra has been associated with FSN Brands since May 2016. According to the company’s draft red herring prospectus (DRHP), the total payment paid to her in FY21 was Rs 3.06 crore.

Nihir Parikh, the CEO of Nykaa, Man Business, has about 2 million shares and 0.12 million ESOPs valued at Rs 245 crore, according to the newspaper report, which added that Parikh started with the company in 2015 and earned Rs 2.83 crore in FY21.

Sanjay Suri, Nykaa E-chief Retail’s technology officer, owns 1.8 million shares and 0.15 million Esops worth Rs 220 crore. In FY21, Suri, who joined the company in 2016, was paid 2.39 crore, the Mint reported.

Nykaa E-chief Retail’s supply chain officer, Manoj Jaiswal, has shares and options worth Rs 63 crore, while the company’s chief financial officer, Arvind Agarwal, owns shares and options worth Rs 45 crore, it said. Nykaa Fashion’s chief business officer, Gopal Asthana, owns shares and options worth Rs 29 crore.

According to the red herring prospectus, Fidelity Management and Research LLP purchased the company’s shares from several early investors at the time. Sanjay Nayar Family Trust, Falguni Nayar Family Trust, Anchit Nayar Family Trust, and Adwaita Nayar Family Trust have a combined net value of $3.83 billion as of this valuation.

Sunil Kant Munjal, the founder of Hero Group, increased his interest in the company 19-fold at the IPO pricing. For 119 crore, his average cost of purchase per equity share was 56.54 per share. Munjal owns a stake of Rs 2,413 crore at the IPO upper band price.