In Focus: Nykaa’s 'Unlock' Trade Is High On Speculation, Low On Delivery
Nykaa shares are seeing unusual volumes ahead of Nov. 10, when the lock-in period ends for shares held by pre-IPO investors.
Shares of Nykaa's parent have been volatile over the last few days as the lock-in for anchor investors draws near.
In the last one month, the FSN E-Commerce Ventures Ltd. stock fell from Rs 1,305 to a 52-week-low of Rs 975 on high volumes, last week.
In October, trading volume was high on the NSE at 1.41 million shares. And average delivery percentage was 37.10% during the month.
During last week's fall, high volumes coincided with high delivery. But the recovery in the last two days has been on low delivery, pointing to speculative trading ahead of Nov. 10, when the one-year lock-in period ends for shares held by pre-IPO investors.
These investors have the option of selling their shares from Nov. 10 onwards. Since the bonus share issue now coincides with the end of anchor lock-in, the seller will get the cum-bonus share price if sold on Nov. 10, but the buyers will get shares at ex-bonus price.
The company changed the record date for the bonus share issue from Nov. 3 to Nov. 11. It did not cite a reason for it.
Foreign portfolio investors hold 4.54% in the company post IPO. 64.23% of their shareholding was locked in for a year and opens for trading on Nov. 10.
Over 40.13 crore shares will be out of lock-in at the end of Nov. 9, as per the exchange notification. Of this, 18.68 crore shares belong to public shareholders.
Five key FPIs, holding 9.39% or 4.3 crore shares in the company, will see their shares open up from lock-in. Others include non-institutional pre-IPO investors.