In its board meeting held today, the board of FSN E-Commerce Ventures, the parent company of e-commerce brand Nykaa, has announced a 5:1 bonus issue. Eligible shareholders will receive five bonus shares for every 1 share that they hold. Soon after the announcement, at 11:24 AM, the company’s shares were trading 7.85% higher at ₹ 1372 apiece.
Bonus shares are fully paid additional shares that are issued by companies to existing shareholders. To be eligible for a bonus issue, shareholders must hold the shares before the ex-date and continue to hold them on the record date.
“We hereby inform that the Board at its Meeting held on October 03, 2022, inter alia, has approved a bonus issue of equity shares in the proportion of 5 fully paid-up equity shares of Re 1/- each for every 1 fully paid-up equity shares of Re 1/- each held by the shareholders of the company as on the record date, subject to shareholders’ approval by way of postal ballot,” Nykaa informed the bourses.
The company has fixed Thursday, November 03, 2022, as the record date for the purpose of determining members eligible for bonus equity shares. This is subject to regulatory approvals and approval by the shareholders of the company. It is estimated that these shares will be credited within two months from the date of approval by the company’s board of directors, i.e., by December 02, 2022.
This bonus issue will be out of the Securities Premium Account available as on March 31, 2022. In addition, the board has approved the re-classification of the authorized share capital of the company from ₹ 325 crores comprising 275 crore equity shares and 50 crore preference shares to ₹325 crores comprising 325 crore equity shares, subject to shareholders’ approval by way of postal ballot.
Further, the actual number of bonus equity shares to be issued and post bonus issue share capital will be determined based on the paid-up share capital as on the record date.
Earlier, the Indian Institute of Management Ahmedabad (IIMA), a premier global management institute, signed an agreement with Nykaa, to set up the “Nykaa Chair in Consumer Technology,” which will work closely with students of IIMA and faculty members from the Marketing and Information Systems areas.
FSN E-Commerce Ventures’ (Nykaa) shares got listed on the BSE and NSE in November last year. Nykaa shares are down 35% in 2022 (YTD) so far, whereas its shares have declined about 43% since listing.
It reported a 42.24 per cent increase in consolidated profit at ₹ 5.01 crore as compared to the corresponding period a year ago, aided by better topline and operating performance.
The company was founded by former investment banker Falguni Nayar, in 2012. The company has two business verticals, Nykaa and Nykaa Fashion. Under these, it has a diverse portfolio of beauty, personnel care and fashion products, including its owned manufactured brand products.
Written by Simran Bafna
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