Nykaa rises 11% after the board agrees to a 5:1 bonus share
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. Since August 19, the stock’s current price is the highest it has been.
According to a filing with the exchange, “The board approved the bonus issue of equity shares in the proportion of 5 fully paid-up equity shares for every one fully paid-up equity share of Re 1 each held by the shareholders of the company as of the record date, subject to shareholders’ approval by way of postal ballot.”
The record date for the purpose of selecting members eligible for bonus equity shares has been set by the firm as November 3, 2022.
On September 28, just last week, Nykaa announced that its board would meet on October 3 to talk about a first-bonus issue.
Nykaa manufactures, sells, and distributes items for personal care, wellness, fitness, skincare, and hair care through physical stores, stalls, general trade, and modern trade in addition to online channels such as e-commerce, m-commerce, the internet, and intranet.
The stock was trading 7% higher at Rs. 1,367 at 11:19 AM, while the S&P BSE Sensex was down 0.57 %.
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 its 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 crores.
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. According to a recent analysis from Motilal Oswal Financial Services, Nykaa was able to build a loyal customer base with good repeat purchasing habits thanks to its customer-centric strategy.
