Mamaearth parent Honasa Consumer grants 53,322 stock options to employees

Honasa Consumer Limited, the parent company of skincare brand Mamaearth, has approved a fresh round of employee stock option grants under its existing equity incentive plan. According to a regulatory filing made on Wednesday, the company’s Nomination and Remuneration Committee (NRC) approved the allotment of 53,322 stock options on June 18 through a circular resolution.

Each stock option, issued under the Honasa Consumer Limited Employee Stock Option Plan – 2018 (ESOP-2018), is convertible into one equity share of the company with a face value of Rs 10. The exercise price has been fixed at Rs 10 per share, signaling that the options have been granted at par.

The ESOP grants are in accordance with SEBI’s Share Based Employee Benefits (SBEB) regulations, the company said. Upon full vesting and exercise of these options, the issuance would result in the allotment of 53,322 equity shares to eligible employees.

At the stock’s current market price of Rs 304.90 on the National Stock Exchange, the total value of this grant is estimated at approximately Rs 1.6 crore. Shares of Honasa opened at Rs 308 on Thursday.

The NRC, which administers the ESOP scheme, evaluates grants based on an individual’s role, performance metrics, and business targets. Under the scheme's rules, options will vest in line with a predefined schedule and can be exercised during employment or within 90 days from the last working day post-resignation. As this is a new grant, no options have yet vested, been exercised, or lapsed.

This latest move follows a similar stock incentive issued in April this year, when the company granted 24.16 lakh stock options under the same plan. Earlier, in January, Honasa had allocated 45,663 stock options as part of its broader equity-based reward framework.

The grant comes amid recent leadership changes at the Gurugram-headquartered firm. Earlier this week, Honasa appointed Yatish Bhargava as chief business officer, months after the exit of Zairus Master from the same role in February.

Honasa Consumer, co-founded by Varun and Ghazal Alagh, also owns personal care brands like The Derma Co, Aqualogica, BBlunt, and Dr Sheth’s. The company has been steadily expanding its product portfolio and workforce as it builds out its omnichannel distribution strategy.