Nykaa Shares Trade Ex-Bonus; Lock-in period also ends today

last month, hero announced that its Board has approved the issuance of Bonus Equity Shares of the Company in the ratio of 1:5, i.e., the Company will issue bonus of 5 shares for every 1 share as on the record date. The Board of Directors of the company subsequently revised the record date for its bonus issue to Friday, November 11, 2022 from November 03, which was earlier fixed.

Lock-in ends in November for four consumer-focused tech stocks, which have all declined in the past month, including One97 Communications Ltd, operator of payments service Paytm and Nykaa. Nykaa’s shares debuted on the stock market in November last year.

“With the lock-in set for the pre-IPO shareholders set to expire on November 10, 2022, it will be important to see whether these investors liquidate or continue for further gains. Nykaa is certainly a different game, but the fact that 12%+ shareholding is sitting at a 100x return may be reason enough for these investors to diversify their portfolios that may exceed Nykaa.” JMFinancial said.

The brokerage also noted that most of these investors had generated liquidity during the OFS and secondary sales prior to the IPO. In addition, 70% of the share capital being unlocked belongs to patient capital such as HNIs and family offices, which may not be obliged to sell due to the period of funds.

Nykaa reports manifold growth in its consolidated net profit 5.19 crores for the three months ending September 2022 1.17 crore in the same period a year ago. Nykaa’s consolidated gross merchandise value (GMV) rose 45% year-over-year to 45%. 2,345.7 crore in Q2 FY23.