Nykaa Shares Rally As Anchor Lock-In Ends A Day Ahead Of Bonus Record Date
Shares of Nykaa's parent FSN E-Commerce Ventures Ltd. swung between gains and losses in early trade.
Shares of Nykaa's parent FSN E-Commerce Ventures Ltd. ended higher after swinging between gains and losses on Thursday as the stock's pre-IPO lock-in period ended a day ahead of its bonus issue record date.
The lock-in period is scheduled to end for the online retailer on Nov. 10, while the record date for the share bonus is on Nov. 11.
As a result, the stock saw several large trades in the opening minutes. According to Bloomberg, about 0.9% stake of the company changed hands in separate large trades.
The stock opened volatile, starting the session by falling 6.2% only to reverse all losses within minutes and gained 7% to Rs 189.05 apiece.
Intraday, the scrip gained as much as 8.5% and ended day's trade 6.5% higher, at Rs 188.25.
In a note, Jefferies said there may not be a 'big' selloff in shares of FSN E-Commerce Ventures Ltd. when the anchor lock-in period ends, because of the bonus share issue.
"The bonus (five shares for everyone) complicates things, as shareholders (pre and post IPO) on Nov. 10 would be able to sell only 17% of their holdings," the brokerage said in its note.