Nykaa’s Chief Financial Officer Arvind Agarwal has stepped down to pursue other opportunities in the digital economy and start-up space.
This comes even as the fashion and beauty products retail company has been facing flak for its move to issue bonus shares. Nykaa’s 5:1 bonus issue is being criticised as an ‘unfriendly’ move for the company’s existing investors who purchased shares last year during the IPO.
Experts are of the view that due to the bonus issue, those holding the shares for the past year are staring at a higher tax outgo. Though the bonus issue was aimed at deterring certain large investors from selling shares after their one-year mandatory lock-in ended on November 10, private equity firm Lighthouse India sold 1.8 crore shares of the company in a block deal on Tuesday. As a result, the stock has nosedived by nearly 4.5 per cent at close on Tuesday on BSE.
On his resignation, Agarwal said, “It has been great to be a part of the incredible Nykaa journey thus far. All my learning & experiences to date, have set me up for pursuing different personal growth opportunities in the digital economy & start-up space. I wish Nykaa the very best for the growth path ahead and will always be a part of the Nykaa Family.”
Additionally, Agarwal will also cease to be a Key Managerial Personnel (KMP) with effect from November 25.
Nykaa said that the company is in the process of appointing a new CFO.
Nykaa was listed on November 10, 2021. Investors had given it a nearly 80 per cent premium over its issue price of Rs 1,125.