Nykaa: Nykaa rose 11 percent after the approval of the bonus share, now the business is going on at this level

The Company has fixed November 03, 2022 as the record date for the purpose of determining the eligible shareholders for Bonus Equity Shares.

Shares of FSN E-commerce, operating under the Nykaa brand, rose 11 per cent to Rs 1,411.80 on the BSE in intra-day trade on Monday after the company’s board approved bonus shares in the ratio of 5:1, i.e. each one For five bonus shares placed shares in the company. The stock is now trading at its highest level since August 19. The Board has approved bonus issue of equity shares in the ratio of 5 fully paid-up equity shares of Re 1 each for every fully paid up equity shares of Re 1 each held by the shareholders of the Company as on the record date.

The company has set November 03, 2022 as the record date for the purpose of determining the eligible members for bonus equity shares, Nykaa said in the exchange filing, subject to approval of the shareholders through postal ballot. Last week, on September 28, Nykaa said its board would first meet on October 3 to consider the bonus issue.

Nykaa is engaged in the business of manufacturing, selling and distributing beauty, wellness, fitness, personal care, health care, skin care, hair care products across online platforms or websites such as e-commerce, m-commerce, internet, intranet. Also through physical shops, stalls, general trading and modern trading etc. at 11:19 am, the stock was trading 7 per cent higher at Rs 1,367 compared to 0.57 per cent fall in S&P BSE Sensex. However, in the last six months, Nykaa has registered a fall of up to 20 per cent in the market as against the gain of 8 per cent in the Sensex.

Started in November 2021 in the stock market

Nykaa stock had hit a record high of Rs 2,574 on November 26, 2021. It had touched a record low of Rs 1,208.40 on May 12, 2022. Nykaa made its debut in the stock market on November 10, 2021. The company had raised Rs 5,300 crore through this and made an initial public offering by issuing shares at a price of Rs 1,125 per share.

Meanwhile, Nykaa believes that its success is the result of understanding the customer and creating custom solutions for them. It has tried to create customer experience at par with international standards like Amazon and Flipkart. It worked with its brand partners to create the Mini SKU or Access Pack specifically for the Indian market.

Nyka used to enter expiry date data

Nykaa was also the first to put the expiry date data on its website and only bought merchandise from those brands which were at least 15 months away from the expiry. Motilal Oswal Financial Services said in a recent report that this customer-centric approach helped Nykaa build a loyal customer base with healthy repeat buying patterns.