Key Takeaways:
- Nykaa bonus shares announcement hit the wire recently, promising bonus shares in the ratio 5:1.
- The news resulted in Nykaa share prices jumping 11% intraday.
NEW DELHI (CoinChapter.com) — Beauty and wellness brand Nykaa’s share price jumped nearly 11% intraday on Oct 3, reaching an intraday high of INR 1,411 (BSE) in early trade on Monday before prices pared gains.
Nykaa share prices were reacting to news of the firm announcing bonus shares for its eligible shareholders. The Nykaa bonus shares 2022 announcement entails that every shareholder will get bonus shares in the ratio of 5:1, as in 5 shares for every share a person holds.
Once the announcement hit the wire, Nykaa prices recorded their highest single-day jump in over three months.
Furthermore, the spike also saw Nykaa prices reach their highest level since Aug 17.
The board approved bonus issue of equity shares in the proportion 5 fully paid-up equity share of Re 1 each for every 1 fully paid-up equity shares of Re 1 each held by the shareholders of the company as on the record date, subject to shareholders’ approval by way of postal ballot
Nykaa said in an exchange filing
The Nykaa board of directors would determine shareholder eligibility by Nov 3.
FSN E-commerce Ventures made a stellar debut last year. However, Nykaa share prices are still down by nearly 40% year-to-date. Furthermore, the firm has underperformed the market over the past six months, falling nearly 20%.
Is It Too Late to Invest in Nykaa Shares?
Nykaa share prices reached a record high of INR 2,574 on Nov 26 last year. However, the stock has since been moving downwards, reaching an all time low of INR 1,208.4 on May 12 earlier this year. The firm believes that its understanding of customer requirements would help it reach new heights.
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The firm offers targeted products for the Indian consumer market and ensures quality of its merchandise. Nykaa recently partnered with Indian Institute of Management, Ahmedabad, the country’s premier management school, to establish a research chair in consumer technology.
Through our partnership with Nykaa, we aim to work together on finding research solutions to some of the immediate, real-time questions in the consumer tech space. We look forward to bringing on board a talented, research focused individual to take up this position at the institute.
Professor Errol D’Souza, Director, IIMA, said
The focus will be on incorporating technology in marketing, and using AI and machine learning for disrupting the market place.
Additionally, Nykaa launched its first flagship store in New Delhi.
The firm seems to be adding on fundamentals, but Nykaa share prices remained unbothered. However, given that the year end is usually a time of several festivals in the country, Nykaa is likely to record increased sales.
The sale boost might translate into an increase in Nykaa share prices. Investors might like to wait for a few days for the prices to consolidate before buying to avoid losses.
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