Street Signs: Nykaa 5:1 bonus issue, all eyes on Paytm and Delhivery & more

Nykaa 5:1 bonus issue: Masterstroke or dud?

FSN E-Commerce Ventures (Nykaa) issued a 5:1 bonus issue around the time the one-year lock-up for its pre-initial public offering (IPO) investors ended. The move has drawn mixed response from the market. Some called it a masterstroke that helped mitigate the selling pressure seen around the time of expiry of the lock-up period. Others criticised the move as it thwarted the selling of shares for some investors. This is because the bonus shares issued by the company are yet to be made available for trading by the bourses. Industry players said this episode prompted the capital markets regulator — the Securities and Exchange Board of India — to rework timelines around the issue of bonus issues. It should look to enable the trading of bonus shares immediately after they are issued, observed an expert.

Kaynes, Inox see colour in grey market premium

Shares of Kaynes Technology India and Inox Green Energy are trading at a grey market premium (GMP) of 20 per cent and 10 per cent, respectively, said people in the know. Their initial public offerings (IPOs) got underway last week. Kaynes’ issue, which closes on Monday, is subscribed 1.1x. Meanwhile, Inox’s IPO, which closes a day later, is almost half covered. Mumbai-based realtor Keystone Realtors whose IPO opens Monday, is yet to see any trades in the grey market.

Paytm, Delhivery cynosure of all eyes

Start-ups One97 Communications (Paytm) and Delhivery are likely to come under focus with the lock-up for pre-initial public offering (IPO) investors in the two companies set to expire. Paytm’s lock-up ends on Tuesday. Delhivery’s ends on November 20. Paytm is down over 70 per cent over its IPO price, while Delhivery, too, has almost halved over its issue price. Yet, market players don’t rule out share sales by existing investors in these companies, given most pre-IPO investors are still sitting on healthy gains. In the case of Delhivery, for instance, most pre-IPO investors have bought their shares at less than Rs 200 apiece.