Nykaa hits record low; slips below IPO price

FSN E-Commerce Ventures (Nykaa) fell 2.82% to Rs 1111.45, slipping below its initial public offer (IPO) price.

Investors are tensed as the lock-in period for pre-IPO shareholders (promoters, employees & other institutions) ends on 10 November 2022, a year after Nykaa formally listed on the bourses.

Shares of Nykaa entered the bourses on 10 November 2021. It was listed at Rs 2001, a premium of 77.87% to the issue price of Rs 1125. The IPO of Nykaa was subscribed 81.78 times. The issue opened for bidding on 28 October 2021 and it closed on 1 November 2021. The price band of the IPO was fixed at Rs 1,085-1,125 per share.

Post listing the stock hit a record high of Rs 2574 on 26 November 2021. Thereafter the stock went downhill and hit a record low of Rs 1109.05 today.

The stock had underperformed the market over the past one month, sliding 14.98% compared with 2.72% rise in the Sensex.

The scrip underperformed the market in past one quarter, falling 22.47% as against Sensex's 7.02% fall.

Founded in 2012, Nykaa is one of India's leading lifestyle-focused consumer technologies platforms. It offers over 4,500 brands and over 4.6 million product SKUs through its website and mobile applications.

The company's consolidated net profit rose 33% to Rs 4.55 crore in Q1 FY23 as against net profit of Rs 3.42 crore in Q1 FY22. Revenue from operations jumped 41% year on year (YoY) to Rs 1,148.42 crore in Q1 FY23.

The company's board on 3 October 2022 approved issuing 5 bonus equity shares for each share held (5:1). The board also approved fixing 3 November 2022, as the record date for the proposed bonus issue.

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