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Shares of FSN E-commerce, which operates under Nykaa brand, soared 11 per cent to Rs 1,411.80 on the BSE in Monday’s intra-day trade after the company’s board approved bonus shares in the ratio of 5:1 i.e. five bonus share for every one share held in the company. The stock now trades at its highest level since August 19.
“The board approved bonus issue of equity shares in the proportion 5 fully paid-up equity share of Re 1 each for every 1 fully paid-up equity shares of Re 1 each held by the shareholders of the company as on the record date, subject to shareholders’ approval by way of postal ballot,” Nykaa said in exchange filing.
The company has fixed November 03, 2022, as the record date for the purpose of determining members eligible for bonus equity shares.
Last week, on September 28, Nykaa said its board will meet on October 3 to consider a maiden bonus issue.
Nykaa is engaged in the business of manufacturing, selling & distribution of beauty, wellness, fitness, personal care, health care, skin care, hair care products on the online platforms or websites such as e-commerce, m-commerce, internet, intranet as well as through physical stores, stalls, general trade and modern trade etc.
At 11:19 AM, the stock traded 7 per cent higher at Rs 1,367, as compared to 0.57 per cent decline in the S&P BSE Sensex.
However, in the past six months, Nykaa has underperformed the market falling up to 20 per cent, as against an 8 per cent rally in the Sensex.
The stock had hit a record high of Rs 2,574 on November 26, 2021. It touched a record low of Rs 1,208.40 on May 12, 2022. Nykaa made its stock market debut on November 10, 2021. The company had raised Rs 5,300 crore through initial public offering by issuing shares at price of Rs 1,125 per share.
Meanwhile, Nykaa believes that its success is a result of understanding the customer and creating custom solutions for them. It has strived to create a customer experience at par with international standards set by the likes of Amazon and Flipkart. It worked with its brand partners to create mini SKUs or access packs specifically for the Indian market.
Nykaa was also the first to put expiry date data on its website and only purchased merchandise from brands, which were at least 15 months away from expiration. This customer-centric approach helped Nykaa to create a loyal customer base with healthy repeat purchase patterns, Motilal Oswal Financial Services said in recent report.
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First Published: Mon, October 03 2022. 11:39 IST