Honasa allots more than 45,000 stock options to ESOP pool
The allotment comes two months after the company lost its unicorn status amid media reports of credit backlog and unsold stock.
Honasa Consumer, the parent company of Mamaearth, on Friday expanded its employee stock ownership plan (ESOP) with an allotment of 45,663 stock options to eligible employees.
Each equity share will have a face value of Rs 10 each and its exercise price is set at Rs 10 per share, according to the BSE filing.
Based on Honasa's closing price on Friday, the value of the new stock options totalled Rs 1.12 crore.
The notice also added that these vested options can be exercised by the employee during any time during their tenure or within 90 days from their last working day as an employee at Honasa.
Honasa’s ESOP allotment comes almost two months after the company lost its unicorn status in a series of events following its second quarter earnings.
The Varun Alagh-led company clocked a loss-making quarter after clocking in a profit in the previous quarter. It posted a loss of Rs 18.71 crore in the July-September 2024 quarter from a profit of Rs 29.78 crore in the corresponding quarter in the previous year.
Additionally, the company has been clocking slower revenue growth across quarters and reported a 19% rise in Q1FY25 and 21% YoY growth in Q4 FY24. Its latest quarter witnessed a de-growth of 7% to Rs 461.82 crore.
Honasa had clarified the scope of its leftover inventory with distributors amid media reports of credit backlogs and unsold stock with distributors.
The company clarified that its distribution value chain carried a total inventory of Rs 40.69 crore, against the quoted figure of Rs 300 crore of near-expiry inventory by the All India Consumer Products Distributors Federation.
Honasa’s share price closed at Rs 246.45 apiece on BSE on Friday.
Edited by Jyoti Narayan