E-commerce ventures by FSN With a market cap of $46,655.62 billion, Nykaa Ltd. is a large-cap business that operates in the consumer discretionary industry. In the personal care, cosmetics, skincare, haircare, bath and body, fragrance, grooming appliances, and health & wellness categories, Nykaa offers a hand-selected, wide range of items from more than 2400 brands. The 5:1 bonus share record date has been moved from November 3, 2022, to November 11, 2022, by the company’s Board of Directors.
Nykaa, a start-up in the beauty and design industries, has changed the record date for bonus shares to November 11. The company has referred to SEBI’s letter from October 3, 2022, regarding the issuance of bonus equity shares of the company in the ratio of 5 fully paid-up equity shares of 1 rupee each for every 1 fully paid-up equity share of 1 rupee each, subject to the approval of shareholders by way of postal ballot, and information that the board of the company has set Friday, November 11, 2022, as the record date to determine the members eligible for the bonus, in accordance with Regulation 42 of SEBI Listing Regulations.
Operating since 2012, Nykaa is the top omnichannel beauty destination in India. Mumbai serves as the company’s headquarters. Since Nykaa only sells products for beauty, fashion, and wellness, it is preferred. The company offers a comprehensive selection of goods in a number of areas, including beauty, fragrance, personal care, bath and body, grooming tools, and health and wellbeing. Nykaa is essentially a one-stop shop for all needs related to wellness, grooming, and beauty.
The fact that Nykaa gives customers a huge selection of brands to choose from is another factor in its success. It comprises national brands, premium brands, luxury and prestige brands, niche and cult brands, as well as brands from other countries. More than 2,400 brands are currently available on the company’s marketplace. Additionally, users benefit from expert advice and a variety of educational videos. Nykaa is expanding as a community by enabling members to exchange thoughts, advice, and experiences.
At 9:30 am, the stock on the BSE fell more than 6% to a 52-week low of Rs 975 per share. The scrip has already lost more than half of its value this year.
According to JM Financial, around 67 percent, or 31.9 crore shares of Nykaa, are likely to be available for trading on the expiration day. HNIs including Sunil Kant Munjal, Narotam Sekhsaria, and Harindarpal Singh Banga as well as Steadview Capital Mauritius Ltd, TPG Growth IV SF Pte. Ltd, and Lighthouse India Fund III will also be permitted to sell their interests.
Nykaa has been an underperformer from the previous 3-4 months hitting an all-time low despite a rise seen in the overall markets according to Prashanth Tapse, senior vice-president (research) of Mehta Equities. The counter would experience a strong selloff before the post-IPO lock-in period expires on November 10, 2022, which might lead to increased selling pressure.
Since their early investment, shareholders who own more than 12% of Nykaa’s shares have received 100 times their original investment. According to some analysts, this would even be sufficient justification for these investors to diversify their portfolios, which may already be too heavy on Nykaa.
The firm approved a 5:1 bonus share issue earlier in October, which would have issued 5 fully paid-up equity shares of Rs. 1 each for every fully paid-up equity share of Rs. 1 held by a shareholder of the company as of the record date, which was previously set for November 3.
The stock dropped to Rs 975 per share in the previous session, its 52-week low. Before the statutory anchor investor lock-in period expires, the stock is seeing a significant sell-off following a fantastic launching in November of last year.
A 62% discount from the stock’s 52-week high price is being offered in the current market.
