Nykaa shares go up over 10% beating market expectations
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In Friday morning deals, Nykaa's stock surged over 10% and beat market expectations. There were speculations that the company would come under intense selling pressure.
Nykaa made its market debut on November 10 2021 after a successful IPO. Regulations bar pre-IPO investors from trading in shares for one year. After the limitation was lifted on Thursday, there were rumours that the stock will come under pressure because the pre-IPO investors might be looking for an exit, reported NDTV.
In the previous session, shares of Nykaa fell 7.15% to hit a low of Rs 166.85. This was due to the one-year lock-in period expiring which triggered selling pressure. J M Financial said 67.20% of the outstanding shares of Nykaa will become eligible for trading on November 10. On Friday, investors got good news as the stock traded over 1,000 points higher. However, its current market price is way below its 52-week high of Rs 429.86.
The Board of the lifestyle retailer FSN E-Commerce Ventures Ltd had earlier approved a bonus issue of equity shares in the proportion of 5:1. It is to encourage the participation of retail investors in the long term, as well as see a wider shareholding.
