FSN E-CommerceVentures Ltd, the parent of beauty & personal care (BPC)brand Nykaa, on Mondaycheered its shareholders by declaring a bonus issue in the ratio of 1:5. This is the first bonus after it got listed in November 2021.
The company will issue five bonus shares for every one held. The stock markets gave a thumbs-up to the announcement resulting in the Nykaa stock rising to an intra-day high of Rs 1,411.80 on the BSE, a rise of nearly 11 per cent.
The counter later pared those gains to end at Rs1,304.90 a rise of 2.44 per cent.
Nykaa has fixed November 3 as the record date for the purpose of determining members eligible for the bonus shares.
Following the bonus issue, the share capital of the company will rise to 284 crore shares from 47 crore shares.
Shares of the company had made a strong debut on November 10, 2021 and it ended with a premium of 96 per cent to the issue price of Rs 1,125per share.
At current prices, the counter is trading at a premium of nearly 16 per cent to the issue price. it presently has a market cap of Rs 61,924 crore in the BSE.
Falguni Nayar, 58, a former investment banker had founded the company in 2012. It is present in two main business verticals — B2C through the brand Nykaa and apparel &accessories via Nykaa Fashion. It has a diverse portfolio of beauty, personal care and fashion products, including its owned brand products, even as it provides customers an omni-channel experience.
In August, the company had announced the acquisition of digital content-cum-commerce firm Iluminar Mediaknown by the brand name of Little Black Book (LBB). While Nykaa did not disclose the deal value, the firm said the acquisition aligns with its fundamental content-first approach to engaging with its loyal consumer base.
