Online beauty and personal care (BPC) retailer Nykaa on Monday, announced board approval for a bonus issue of 5 shares for every 1 held.
“The board has approved bonus issue of equity shares in the proportion 5 (Five) fully paid-up Equity Share of Rs 1/- each for every 1 fully paid-up equity share of Rs 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 shares of FSN E-Commerce Ventures Ltd-operated Nykaa traded at around Rs 1,325.55 apiece in mid-day trade, up 4.2%, after surging as much 10% in early trade.
The company will decide the eligible members for bonus shares in a meeting on 3 November, 2022.
The announcement of its first-ever bonus after listing comes at a time when new age companies have struggled on bourses after making public debuts. Falguni Nayar-led Nykaa stock has dropped 35% since the beginning of the year.
But drop in stock prices and market capitalization hasn't stopped Nykaa from expanding business. In an acquisition spree, the company in August bought lifestyle discovery platform Little Black Book for an undisclosed sum. In April, it had announced three strategic investments in Earth Rhythm, Nudge Wellness and Kica to boost its beauty & clothing portfolios.
Last month, Falguni Nayar and the family of Nykaa featured in the IIFL Wealth Hurun India Rich List 2022, which features individuals with a net worth of Rs 1,000 crore or more. Nayar overtook Biocon’s executive chairperson Kiran Mazumdar-Shaw to become the richest self-made Indian woman with a wealth of Rs 38,700 crore.
The company had last reported a net profit of Rs 4.5 crore for the quarter-ended June, a rise of 32.4% from the corresponding period last year and a revenue of Rs 1,148.4 crore 40.6% over same time last year.
