The record date for the purpose of selecting shareholders eligible for bonus equity shares has been set by the firm as November 3, 2022.
After the business’s board approved bonus shares in the ratio of 5:1, or five bonus shares for every one share held in the company, FSN E-commerce shares, which trade under the Nykaa name, rose 11% to Rs 1,411.80 on the BSE on Monday. Currently, the price of the stock is at its highest level since August 19, 2022. The consumer technology platform authorised the issuing of bonus shares at its board meeting today.
According to the company’s filing with the exchanges, the bonus issue of equity shares in the ratio of 5 fully paid-up equity shares of Rs. 1 each for every fully paid-up equity share of Rs. 1 each held by shareholders of the company as of the record date has been approved by the board, “subject to approval of shareholders by way of postal ballot.”Â
The record date for the purpose of selecting members eligible for bonus equity shares has been set by the firm as November 3, 2022.
Bonus shares are extra shares that are given away to shareholders in accordance with their stock ownership. Typically, the corporation uses its free reserves and surplus to issue bonus shares.
The reclassification of the authorised share capital was approved by the firm during a board meeting.
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About the Company
FSN E-Commerce Ventures is an online retailer that provides products for personal care and beauty. The company’s product line includes a variety of cosmetics, grooming tools, body odour, and hair and skin care products.
Nykaa is in the business of producing, marketing, and distributing products related to beauty, wellness, fitness, personal care, health care, skin care, and hair care through physical stores, stalls, general trade, modern trade, and other channels such as e-commerce, m-commerce, the internet, and intranet.
In November 2021, Nykaa made its market debut at a premium of 80% over its initial offering price of Rs. 1,125. It became the first unicorn firm in India to have a female CEO Falguni Nayar in 2020.
On Monday, October 3, Nykaa’s stock price on the NSE ended 2.55 higher at Rs 1,304.55. The counter has so far returned a negative 38% in 2022 and a negative 45% from its 52-week high. The 52-week price range for Nykaa shares is Rs 2,573.70 to Rs 1,207.50.
An earlier agreement to establish the “Nykaa Chair in Consumer Technology” was reached by Nykaa and The Indian Institute of Management Ahmedabad (IIMA), a renowned international management institute. The Chair will collaborate closely with IIMA students as well as academic staff from the departments of marketing and information systems.
The Bonus issue
On September 28, just last week, Nykaa announced that its board would meet on October 3 to talk about a first-bonus issue.
At 11:19 a.m., the stock was trading 7% higher at Rs. 1,367, while the S&P BSE Sensex was trading 0.5% lower.
Performance in the past six months
However, compared to the Sensex’s 8% increase over the past six months, Nykaa underperformed the market, plunging up to 20%.
On November 26, 2021, the stock reached a record high of Rs 2,574. On May 12, 2022, it reached a record low of Rs 1,208.40. On November 10, 2021, Nykaa made their debut on the public market. The company issued shares at a price of Rs. 1,125 per share in an IPO that raised Rs. 5,300 crore.
Nykaa, on the other hand, thinks that its success comes from knowing its customers and developing personalised solutions for them. It has made an effort to produce a customer experience that meets the high standards set by companies like Amazon and Flipkart outside. In order to develop micro SKUs or access packs exclusively for the Indian market, it collaborated with its brand partners.
Also a pioneer in this area, Nykaa only bought products from manufacturers whose expiration dates were at least 15 months away from being reached. A recent study by Motilal Oswal Financial Services found that Nykaa’s strategy of putting the customer first helped it build a strong customer base with good buying habits.
Read More: The success story of Nykaa
