Nykaa board approves 5:1 bonus issue | The Financial Express

Nykaa board approves 5:1 bonus issue

The company’s gross merchandise value grew 47% on year to `2,155 crore during the quarter.

Nykaa board approves 5:1 bonus issue
The company, founded by Falguni Nayar, listed on the exchanges on  November 10 last year.

Cosmetics and fashion retailer Nykaa said on Monday that its board has approved issuance of bonus to its shareholders in proportion of 5:1, which means that for every one fully paid-up equity share held, ashareholder will get five fully paid-up shares of the company.The company has fixed November 3 as the record date to determine members eligible for bonus equity shares.“We hereby inform that the board at its meeting held on October 03, inter alia, has approved, bonus issue of equity shares in the proportion 5 fully paid-up equity share of Rs1 each for every 1 fully paid-up equity shares of Rs 1 each held by the shareholders of the company as on the record date, subject to shareholders’ approval by way of postal ballot,” the company said in a regulatory filing.

Bonus shares are additional shares given to the current shareholders of the company without any additional cost, based upon the number of shares a shareholder owns. These are the company’s accumulated earnings, which are not given out in the form of dividends, but are converted into free shares. The board also approved formulation and implementation of FSN E-Commerce Ventures – Employee Stock Option Plan 2022 for grant of employee stock options to eligible employees of the company and its group companies. The company, founded by Falguni Nayar, listed on the exchanges on  November 10 last year.

The company’s board also approved re-classification of the authorised share capital from Rs 325 crore comprising 27.5 million equity shares of Rs 1 each and 50 crore preference shares to Rs 325 crore comprising of 32.5 million equity shares of Rs 1 each. 

During April-June quarter, Nykaa posted 43% year-on-year jump in its net profit to Rs 5 crore, against Rs 3.52 crore in the same period a year ago. Consolidated revenue from operations during the period increased 41% to Rs 1,148.42 crore during the period, while operating margin stood at 4%, up 70 basis points.

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The company’s gross merchandise value grew 47% on year to Rs 2,155 crore during the quarter. Within the business, Nykaa’s beauty and personal care segment saw GMV grew 39% y-oy to Rs 14.88 crore while fashion segment’s GMW grew 59% on year to Rs 582 crore. On Monday, FSN E-Commerce Ventures’, Nykaa’s parent firm, shares closed at Rs 1,304.90 apiece on the BSE , up 2.44% from Friday’s close.

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