scorecardresearchNykaa jumps over 5% as board meets on October 3 to consider bonus share

Nykaa jumps over 5% as board meets on October 3 to consider bonus share issue

Updated: 29 Sep 2022, 09:45 AM IST
TL;DR.

Nykaa rose as much as 5.6 percent in today's deals to its day's high of 1,350. In comparison, the Sensex and Nifty were trading around 0.6 percent higher.

The stock rose as much as 5.6 percent in today's deals to its day's high of  <span class='webrupee'>₹</span>1,350. In comparison, the Sensex and Nifty were trading around 0.6 percent higher.

The stock rose as much as 5.6 percent in today's deals to its day's high of 1,350. In comparison, the Sensex and Nifty were trading around 0.6 percent higher.

FSN E-Commerce Ventures (Nykaa) shares surged over 5.5 percent in intra-day deals on Thursday after the company informed that the board is scheduled to meet on October 3 to consider and approve the issuance of bonus shares to shareholders.

"Pursuant to Regulation 29 and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulation, 2015, we wish to inform you that a meeting of the Board of Directors of the Company will be held on Monday, October 03, 2022, to, interalia, consider and approve the issuance of Bonus Shares to the equity shareholders of the Company in the ratio, as it may deem fit and seeking shareholders’ approval by way of postal ballot and such other approval(s), as the Board may deem appropriate," the company said in its BSE filing.

The stock rose as much as 5.6 percent in today's deals to its day's high of 1,350. In comparison, the Sensex and Nifty were trading around 0.6 percent higher.

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Bonus shares are basically additional shares issued by a company to its pre-existing shareholders. These are fully paid shares and the shareholders do not have to incur any extra costs to get them. The number of bonus shares you receive depends on the number of shares of the firm you already hold. This is mostly done to increase the liquidity of the stock. When the price of a share is high, a number of retail investors may find it difficult to buy that share.

In the June quarter, the cosmetics-to-fashion retailer a 42.24 percent year-on-year (YoY) increase in its net profit at 5.01 crore aided by better topline and operating performance, against 3.52 crore in the same period a year ago.

Consolidated revenue from operations for the June FY23 quarter came in at 1,148.4 crore, registering a 40.56 percent growth compared to same period last year. The consolidated gross merchandise value (GMV) has been quite strong and has grown 47 percent year-on-year to 2,155.8 crore for the quarter ended June FY23.

The company made a bumper debut in November last year, listing with a massive 79 percent premium at 2,018 on the NSE. However, the stock has lost over 36 percent from its listing price. It has fallen over 4 percent just in September, extending losses for the fifth straight month. Meanwhile, in 2022 YTD, the scrip has shed 39 percent.

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First Published: 29 Sep 2022, 09:45 AM IST