Nykaa Bonus Share Issue: The firm informed the stock markets that the board of FSN E-Commerce Ventures, the parent company of the e-commerce brand Nykaa, has announced the issuance of five bonus shares for each share that stockholders now own.
In response to this news, the stock increased by about 11% to trade at Rs. 1,370.65, up from it’s past closing rate of Rs. 1,273.80. The price of Nykaa shares has decreased by almost 34.24 percent so far in 2022.
What are Bonus Shares?
Bonus shares are extra fully paid shares that a company issues to its existing shareholders. A listed firm often offers free bonus shares on its existing equity shares to current shareholders. Bonus shares are issued by a listed corporation as a result of free reserves, excess, and the addition of new capital. After bonus issuance, the face value is unchanged.
To be eligible for Bonus Shares, investors must be aware of the Ex-Bonus Date. An investor should purchase shares of a company’s stock at least one or two days prior to the ex-date in order to qualify for bonus shares. The T+1 and T+2 settlement cycles are to blame for this.
The board of Nykaa stated that the share offering will be approved by shareholders by postal poll and other means. The record date for deciding whether members are eligible for the bonus equity shares was set at November 3.
In a filing with the stock exchange, Nykaa stated, “We hereby inform that the Board at its Meeting held on October 03, 2022, among other things, has approved bonus issue of equity shares in the proportion of 5 (Five) fully paid-up equity shares of Re 1/- each for every 1 (One) fully paid-up equity share of Re 1/- held by the company’s stockholders as of the record date, subject to postal ballot approval from shareholders.”
According to the firm, bonus shares will be issued using Securities Premium Account funds that will be accessible as of March 31, 2022. Bonus shares are extra, fully paid shares that a company issues to its existing shareholders. The precise number of bonus equity shares to be issued and the post-bonus issue share capital will be determined using the paid-up share capital as of the record date, the company said.
Two months following the date of board approval, on or before December 02, 2022, is when it is anticipated that these bonus shares would be credited or distributed.
Falguni Nayar, a former investment banker who launched Nykaa in 2012, has a wide range of items in the fashion, beauty, and personal care categories. In November of last year, the company’s shares were listed on the BSE and NSE stock markets.
On the last day of subscriptions, which ended on November 1, 2022, Nykaa’s initial public offering (IPO) was subscribed 81.78 times, mostly due to the intense demand from institutional investors.
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