Nykaa board to meet on October 3 to consider bonus share

Nykaa Bonus Share News: Nykaa is considering a bonus share issue to its shareholders. The e-commerce platform has informed that the company's board of directors will meet on October 3 to consider the issuance of bonus shares. Founded in 2012, Nykaa is one of India’s leading omnichannel beauty and lifestyle retailers.

FSN E-Commerce Ventures, Nykaa's parent company, said in a regulatory filing, “We wish to inform you that a meeting of the Board of Directors of the Company will be held on Monday, October 03, 2022, to, interalia, consider and approve the issuance of Bonus Shares to the equity shareholders of the Company in the ratio, as it may deem fit and seeking shareholders’ approval by way of postal ballot and such other approval(s), as the Board may deem appropriate."

Bonus share is one of the corporate actions wherein extra shares are provided by a company to its shareholders at no additional cost. The bonus shares are subject to approval by the shareholders. The company distributes accumulated earnings as free shares rather than distributing as dividends.

When bonus shares are issued, the scrip's price is adjusted accordingly.

Nykaa made its market debut in November 2021 at a premium of 80 per cent from its issue price of Rs 1,125. In 2020, it became the first Indian unicorn startup headed by a woman.

Nykaa share price on Thursday gained over 4 per cent to Rs 1320 on the NSE. The counter had closed at Rs 1,278.20 apiece on Wednesday.

Nykaa share price 52-week range is Rs 2,573.70 - Rs 1,207.50. The counter has yielded a negative return of around 18 per cent in the last 6 months. It is down by 40 per cent from its 52-week high.