BackNykaa shares trade ex-bonus; lock-in period also ends today
Nykaa shares were trading nearly 3% lower at ₹175 apiece on the BSE in Thursday's early deals
PremiumShares of FSN E-Commerce Ventures Ltd, that runs online fashion marketplace Nykaa, started trading ex-bonus on Thursday, a day ahead of its record date for the bonus issue of equity shares in the ratio of 1:5. Nykaa shares were trading nearly 3% lower at ₹175 apiece on the BSE in early deals. The stock was also under pressure due to the 10 November expiry of the one-year lock-in period for its pre-IPO shareholders.
Last month, Nykaa announced that its board approved the issuance of bonus equity shares of the company in the ratio of 1:5 i.e., the company will issue bonus of 5 shares for every 1 share held as on the record date. The board of directors of the company later revised the record date for its bonus issue to Friday, November 11, 2022 from November 03 that was fixed earlier.
Lock-ins end in November for four consumer-focused tech stocks, which have all slumped in the past month, which include One 97 Communications Ltd., operator of payments service Paytm, and Nykaa. Nykaa shares made stock market debut in November last year.
“With pre-IPO shareholders’ lock-in set to expire on Nov 10th, 2022, it will be crucial to see if these investors liquidate or continue to hold for further gains. While Nykaa is certainly a differentiated play but the fact that 12%+ shareholding is sitting on 100x returns might even be a reason enough for these investors to diversify their portfolio that might be overweight Nykaa," said JMFinancial.
The brokerage also noted that a majority of these investors did generate liquidity during the OFS and secondary sales prior to the IPO. Furthermore, 70% of the share capital that is getting unlocked belongs to patient capital such as HNIs and family offices, which might not be obliged to sell due to tenure of funds.
Nykaa posted a multi-fold increase in its consolidated net profit at ₹5.19 crore for the three months ended September 2022 as compared to ₹1.17 crore in the same period a year ago. The consolidated Gross Merchandise Value (GMV) of Nykaa grew 45%year-on-year to ₹2,345.7 crore in Q2 FY23.
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