Bee Focus

Nykaa board approves the issuance of bonus equity shares in the 1:5 ratio

Nykaa has been facing a lot of pressure over the last few months. In October Nykaa signed off the issuance of a 5:1 bonus share issue which is a fully paid equity with each share being Rs 1 for every 1 fully paid-up equity share of Re 1 held by the shareholders as on the revised record date of November 11, 2022. Nykaa’s shares crashed over 62% although balancing out to 38% in the last six months.

Nykaa is a Mumbai-based startup launched in 2012 and founded by Falguni Nayar. In 2021, on 10th November Nykaa’s shares were listed on NSE and BSE at Rs 2001 with a charge of 77.87% and the price for Nykaa’s IPO was fixed at Rs 1085-1,125 per share with a subscription of 81.78 times.

“We refer to our letter dated October 03, 2022, regarding the issue of bonus equity shares of the company in the ratio of 5 fully paid-up equity shares of Re 1/- each for every one fully paid-up equity share of Re 1/- each, subject to the approval of shareholders by way of postal ballot and inform that pursuant to Regulation 42 of Sebi Listing Regulations, the board of the company has fixed Friday, November 11, 2022, as the ‘record date’ to determine the members eligible for bonus equity shares,” said Nykaa in BSE filing on October 28. Nykaa has been under pressure to sell off the stocks due to the expiry of the compulsory investor stock lock-in period on 10th November.

Recently a brokerage firm ‘Nomura’ said, “The risk-reward is quite favorable for long-term investors, with the potential for the stock to double over the next five years”. They had also set a target coverage (stocks) of Rs 1,365.




Related Articles

Back to top button