Editor's Take: Anil Singhvi explains why Nykaa's bonus share plan is not attractive
Nykaa was listed at more than double of its issue price around Rs 2205 during the listing and since then the share price has halved.
In today’s edition of Editor’s Take, Zee Business Managing Editor, Anil Singhvi compared ITC and Nykaa’s stock price. With Nykaa planning to issue bonus shares, he shared his views on why issuance of bonus shares is not a big win for investors.
According to him, Nykaa was listed at more than double of its issue price around Rs 2205 during the listing and since then the share price has halved. Albeit, it is above the issue price but has still slumped by 41%. ITC on the other hand has increased by 41%.
Emphasising on the pricing of both shares, Singhvi said that investors should decide at what price which share should be bought. The Market Guru added that things that look boring and are not liked by everyone sometimes have the biggest benefit. And that it is not easy to make money out of flashy and most talked about things.
Further he said, bonus shares on the positioning end is a reward to the investors but also questioned its advantage for the investor. He said that bonus shares will increase the number of shares but the value will be halved.
He further emphasised on the fact that Nykaa should reward investors by dividend and that there is no benefit to the investor with bonus shares. Focusing on the profits made by Nykaa in FY 22 he said that the company’s profit has declined by almost 1/3rd compared to last year.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Top 10 PSU Stocks in 1 Year: Rs 1 lakh investment in top stock has given Rs 5.55 lakh post-tax returns
Gold and Silver rate today (May 23, 2024): Precious metal futures trade under pressure, yellow met below Rs 72,650, white metal near Rs 91,200
Gold and Silver rate today (May 21, 2024): Precious metal futures trade lower; yellow metal futures below Rs 73,750, white metal futures slips over 1%
SIP Investment, 15x20x12 Formula: How investing Rs 20K monthly can build a corpus of Rs 1 crore in 15 yrs | Know Calculation
SBI state bank of india Tax Saver FD With 80C Benefits: Rs inr 500000 investment in 5-year fixed deposit interest rate 2024 reward benefit guaranteed return income tax act nbfc
04:00 PM IST