Nykaa spurts after board approves 5:1 bonus issue

FSN E-Commerce Ventures (Nykaa) jumped 6.35% to Rs 1354.65 after the company said its board on Monday (3 October) 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. The proposed bonus issue is subject to shareholders' approval by way of postal ballot.

FSN E-Commerce Ventures operates Nykaa, which is a leading lifestyle-focused consumer technologies platforms. Since its launch, it expanded its product categories by introducing online platforms Nykaa Fashion, Nykaa Man, and Superstore. Delivering a comprehensive Omnichannel e- commerce experience, Nykaa offers over 4,000 brands and over 3.1 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.

Shares of FSN E-Commerce 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 initial public offer (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.

The stock had outperformed the market over the past one month, falling 0.92% compared with 2.88% decline in the Sensex.

The scrip underperformed the market in past one quarter, sliding 4.44% as against Sensex's 7.94% rise. It also underperformed the market in past six months, correcting 20.26% as against Sensex's 3.66% fall.

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