Nykaa Share Price: To stop the sell-off in the shares of fashion retailer Nykaa's company FSN E-Commerce Ventures, the bet played by the company to hold the bonus share was successful. The company had bet on bonus shares to stop selling of shares after the end of the lock-in period of one year and yesterday was its ex-bonus day.

Foreign investors Segantii India Mauritius, Norgas Bank and Aberdeen Standard Asia Focus bought 2.53 per cent stake in the company on the ex-bonus day. The next day today, on November 11, that is, on the day of the record date for bonus shares, there is a sharp jump in the shares. It jumped nearly 20 per cent on the BSE today and reached a high of Rs 224.65 in intra-day.

What bets did the company play?

The shares of Nykaa were listed on November 10 last year. For those who were issued shares of the company before the IPO, there was a ban on selling till November 10, 2022 this year, so there was a possibility of a heavy sell-off at the end of the lock-in period tomorrow.

There were about 67 per cent of the shares in the lock-in, so the company played bonus shares to keep them in check. The management of the company declared five shares at the ratio of 5:1 i.e. five for one and its ex-date was kept as November 10 i.e. the day of the end of the lock-in period.

Foreign investors buy on the day of ex-bonus

Segantii India Mauritius bought 37.92 Lakh shares at an average price of Rs 171.75 on the ex-bonus date. Norway's Norges Bank bought 39.81 lakh shares for Government Petroleum Fund at an average price of Rs 173.35 and Aberdeen Standard Asia Focus Plc bought 42.72 lakh shares at an average price of Rs 173.18.

Foreign investors bought some shares in it from those whose shares were locked for a year. Narottam S Sekhsaria, founder of High Net Worth Individual (HNI) Ambuja Cement, sold 1.47 crore shares or 3.11 per cent equity at a price of Rs 173.7 (Nykaa Share Price).

Shares are broken 48%

Shares of Nykaa were listed on November 10 last year and gave a listing gain of 78 per cent to IPO investors. On the first day, its shares closed at a premium of 96 per cent over the IPO price. After this, Nykaa gained further momentum and it reached a record high of Rs 429.86 (Bonus Adjusted Price) on 26 November.

However, it again showed pressure and it slipped 62 percent in about 11 months to Rs 162.91 (bonus adjusted price) below the issue price on 28 October 2022. Right now it has a recovery of about 38 per cent but is at a discount of about 48 per cent from the record high.