An estimated Rs 57 crore worth of Employee Stock Options (ESOPs) have been granted by Honasa Consumer. The action is in line with the company’s long-term plan to reward and retain employees as the business continues to expand.
In a regulatory filing announcement made on Wednesday that it has issued 24.16 lakh stock options under the 2018 Employee Stock Options Plan (ESOP). Based on the company’s Thursday opening price of Rs 232 per share on the NSE, the entire value of the ESOPs is estimated to be Rs 57 crore.
According to the exchange filing, “The vesting of the above option is expected to happen over a period of 5 years linked to both tenure and Company performance.” Once vested, the granted options will allow employees to acquire an equivalent number of equity shares in the company.
This development follows Honasa’s impressive financial results during the third quarter of FY25. The company’s emerging brand portfolio was a major contributor to its reported revenues of Rs 517.5 crore, which represented a 5.9% year-over-year (YoY) gain over Rs 488.2 crore in Q3 FY24. Honasa reported a flat net profit of Rs 26 crore for the quarter, unchanged from the same period the previous year, despite the gain in revenue. However, compared to a net loss of Rs 24.3 crore in Q2 FY25, this was a notable recovery.
Even in a competitive industry, Honasa Consumer’s strategy of expanding its portfolio of digital-first and direct-to-consumer brands seems to be working well for the company’s bottom line.
Honasa’s ESOP grant is in line with a current trend in which top startups and modern businesses in India are rewarding their staff with equity-based pay. The grant of 2.17 lakh stock options under ESOP 2014 and ESOP 2021, totaling Rs 4.42 crore at the time of reporting, was declared by Eternal (previously Zomato Limited) just one day earlier.
Similarly, the distribution of 11.79 lakh equity shares under its ESOP schemes was authorized by logistics startup Delhivery in March. 3.24 lakh shares under ESOP 2012, 6.89 lakh shares under ESOP II 2020, and 1.66 lakh shares under ESOP III 2020 were allotted. Delhivery’s paid-up share capital increased from Rs 74.44 crore to Rs 74.55 crore as a result.
ESOPs are still a vital tool for luring and keeping top talent while balancing employee interests with long-term business performance as the Indian startup and consumer tech ecosystem develops.
