Nykaa soars 6% as company’s board to consider maiden bonus issue on Oct 3
Shares of FSN E-commerce, which operates under Nykaa brand, soared 6 per cent to Rs 1,350 on the BSE in Thursday’s intra-day trade after the company said its board will meet on October 3 to consider a maiden bonus issue.
The board meeting of the company will be held on October 03, 2022, inter-alia, to consider and approve the issuance of bonus shares to the equity shareholders of the company and seeking shareholders’ approval by way of postal ballot and such other approval(s), for the same, Nykaa said in an exchange filing on Wednesday after market hours.
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 09:19 AM, the stock traded 4 per cent higher at Rs 1,333, as compared to 0.92 per cent rise in the S&P BSE Sensex.
However, in past three months, Nykaa has underperformed the market falling up to 7 per cent, as against a 7 per cent rally in the Sensex. In the past six months, the stock has slipped 17 per cent, as compared to 1 per cent decline in the benchmark index. 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.
While current inflationary pressures will affect consumer discretionary spends in the near term, medium term and long-term growth of both beauty & personal care as well as fashion remains strong. With the increase in disposable income in younger consumers, and online content-led discovery, beauty & personal care, wellness and fashion consumption is seeing increased share of the wallet, Nykaa said in its FY22 annual report.