Nykaa shares up second day in a row after 5:1 bonus issue announcement

Share prices of FSN E-Commerce Ventures, the owner of Nykaa marketplace, gained over one per cent today as it continues to trade in positive post 5:1 bonus issue announcement on Monday. The stocks closed around Rs 1274 a piece on Friday but zoomed to Rs 1,370 per share on Monday post the announcement. However, it closed around Rs 1304 per share yesterday. The FSN E-Commerce Ventures share was trading at Rs 1,317 at 9.55 am today.

Nykaa yesterday said in a regulatory filing that its board has approved the issuance of shares in the proportion of five shares for every one share held by the shareholders as on the record date. The issue is subject to shareholders’ approval by way of postal ballots. The company said that the record date for determining members eligible for the bonus equity shares is November 3.

The company said in its regulatory filing that its board approved the re-classification of the Authorized Share Capital from Rs 325 Crore comprising of 275 Crore Equity Shares of Re 1 each and 50 Crore Preference Shares of Rs 1 each to Rs 325 Crore comprising of 325 Crore Equity Shares of Re 1 each and the consequent amendment to the 5th Clause of the Memorandum of Association of the Company, subject to shareholders’ approval by way of postal ballot.

The company said that the board also approved the formulation and implementation of ‘FSN E-Commerce Ventures Limited – Employee Stock Option Plan 2022’ (“ESOP 2022”) for the grant of Employee Stock Options to Eligible Employees of the Company and its group companies including the subsidiary companies or associate companies of the Company, subject to shareholders’ approval by way of postal ballot.