Nykaa Bonus Share Issue: The board of FSN E-Commerce Ventures, the parent company of e-commerce brand Nykaa, has announced five bonus shares for each of the shareholders, the company informed the stock exchanges. Following this development, the stock was trading close to 8 per cent higher at Rs 1,370.65 against the previous close of Rs 1,273.80. Shares of Nykaa are down more than 34.24 percent so far in 2022 (year-to-date).
What are Bonus Shares?
Bonus shares are fully paid-up additional shares issued by a company to its existing shareholders. Normally, a listed company distributes bonus shares on its existing equity shares to existing shareholders free of cost. A listed company issues bonus shares on account of free reserves and surplus and adding new capital. The face value remains the same after the bonus issue.
The ex-bonus date is an important day for investors to be eligible for bonus shares. To become eligible for the bonus shares, an investor must purchase the shares of the company at least a day or two before the ex-date. This is due to the T+1 and T+2 settlement cycles.
Nykaa’s board said they would seek shareholders’ approval for the share issue through postal ballot and other approvals. It fixed November 3 as the record date for determination of eligible members for bonus equity shares.
“We hereby inform that the Board, in its meeting held on 03rd October, 2022, has, inter alia, approved the bonus of equity shares in the ratio of 5 (five) fully paid-up equity shares of Rs.1/- for every Rs. The issue has been approved. a) Fully paid-up equity shares of 1/- are held by the shareholders of the company as on record date, subject to the approval of the shareholders through postal ballot,” Nayaka informed in an exchange filing.
The company said that the issue of bonus shares would be out of the securities premium account available till March 31, 2022. Bonus shares are fully paid-up additional shares issued by the company to its existing shareholders. The company said that the actual number of bonus equity shares to be issued and the post-bonus issue share capital would be determined on the basis of the paid-up share capital as on the record date.
The estimated date by which such bonus shares will be credited / remitted shall be within two months from the date of approval of the Board i.e. on or before December 02, 2022.
Founded in 2012 by former investment banker Falguni Nair, Nykaa has a diversified portfolio of beauty, personnel care and fashion products. The company’s shares were listed on the stock exchanges BSE and NSE in November last year.
Nykaa’s initial public offering (IPO) was subscribed 81.78 times on the last day of membership, which closed on November 1, 2022, mainly helped by huge interest from institutional investors.
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