Nykaa's stock price increases after announcement of bonus issue

3 Oct 2022 , 01:11 PM

On October 3, shares of FSN E-Commerce Ventures, which operates the Nykaa marketplace, jumped when the business announced a bonus issuance of equity shares.

According to Nykaa, it will issue shares in the ratio of five shares for each share held by the company’s stockholders as of the record date. A postal vote of shareholders is required for approval of the matter.

The record date for deciding whether members are eligible for the bonus equity shares has been set by the firm as November 3.

The stock gained 8% to Rs 1,370 on the BSE.

The business intends to issue to its shareholders 2,372,727,61,850 equity shares with a face value of Re 1 apiece. The paid-up share capital as of the record date will be used to determine the precise number of bonus equity shares to be issued.

Bonus concerns have little effect on a company’s core competency or performance.

This year so far, the stock has done poorly. Despite the increase today, it has decreased by 35% so far this year. On the stock, analysts have also been circumspect.