Nykaa board approves issuance of bonus shares in 5:1 proportion, all you need to know

Beauty, wellness and fashion retailer Nykaa stated on Monday that its board has approved the issuance of bonus shares to its shareholders in proportion of 5:1. It means that a shareholder is going to get 5 fully paid-up shares of the company for every 1 fully paid-up equity share held. Nykaa has fixed 3 November as the record date for determining members eligible for the bonus equity shares. Bonus shares are the additional stocks provided to the current shareholders of a firm without any additional cost, based on the number of shares a shareholder has. These are the company’s gathered earnings, which are not provided in the form of dividends but are turned into free shares. In the April-June quarter, Nykaa reported a 43 per cent year-on-year jump in its net profit to Rs 5 crore, against Rs 3.52 crore in the corresponding period the previous year. During the period, consolidated revenue from operations increased 41 per cent to Rs 1,148.42 crore, while the operating margin was at 4 per cent, up by 70 basis points. The gross merchandise value of the firm increased by 47 per cent on the year to Rs 2,155 crore during the quarter. Within the business, the beauty and personal care segment of Nykaa saw its gross merchandise value (GMV) grow 39 per cent year-on-year to Rs 14.88 crore. The GMW of the fashion segment grew 59 per cent on year to Rs 582 crore. The firm’s board has also approved the re-classification of the authorised share capital from Rs 325 crore containing 27.5 million equity shares of Rs 1 each and 50 crore preference shares to Rs 325 crore consisting of 32.5 million equity shares of Rs 1 each. This will be subject to the approval of the shareholders via postal ballot. Created in 2012 by former investment banker Falguni Nayar, Nykaa has a diverse portfolio of beauty, fashion and personal care products. The stock of FSN E-commerce, Nykaa’s parent company, rose by 11 per cent to Rs 1,411.80 on the BSE in Monday’s intra-day trade after the announcement. The stock is now trading at its highest level since 19 August. In the last six months, Nykaa has underperformed the market, falling up to 20 per cent. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.