InvestorQ : What is triggered Nykaa to fall below the Rs1,000 mark?
vaishnavi mhatre made post

What is triggered Nykaa to fall below the Rs1,000 mark?

vidhya Laxmi answered.
1 month ago

After the digital nine pins like Paytm, CarTrade, Zomato and Policybazaar; even the relatively staid Nykaa (FSN E-Commerce) has corrected sharply. After holding above the IPO issue price of Rs1,125 for close to a year, the stock plummeted to close the week at Rs995. In the month of October alone, the stock of Nykaa lost close to 25% and it is now 71% from the peak price levels of Rs2,574 since listing. Nykaa is now 12% below the IPO price. To an extent it is attributed to the digital effect, but there are concerns over delay in profits, speculator selling ahead of 1 year lock-in opening and funding constraints.

Amidst this chaos, there is also the bonus issue of Nykaa coming up in November. The 5:1 bonus issue has record date of 03rd November and an ex-date of 02nd November. These shares will be credited to the demat accounts of eligible shareholders latest by December 02nd, 2022. Will that help matters? Not like considering that this is being issued from the share premium account collected from shareholders just a year back. Not surprisingly, investors are short of being impressed.