Nykaa trades ex-bonus, plunges 7% as IPO lock-in period expires

Shares of  FSN E-Commerce Ventures (Nykaa) took a beating in Thursday's trade, as the one year lock-in period for pre-IPO shareholders got expired, triggering selling pressure on the counter. The scrip was also trading ex-bonus today.

The scrip fell 7.15 per cent to hit a low of Rs 166.85 a piece. A total of 2.02 crore Nykaa shares changed hands on BSE against a two-week average of 2.26 lakh shares.

Analysts had earlier said that the lock-in expiry would open up 31.90 crore shares for trade, including 15.40 crore shares of promoter & promoter group. In an October note, JM Financial noted that among all larger shareholders of Nykaa, the highest cost of acquisition was Rs 202, implying strong returns.

It said that most Nykaa shareholders had realised gains by selling during the IPO or in secondary sales prior. Of the Nine locked-in financial investors of Nykaa holding 1 per cent-plus share capital of Nykaa, only three did not generate any liquidity from investments, it noted.

"Despite that, the size of gains might still be the cause of further selling in order to diversify the portfolio or to book profits," it had noted.

Meanwhile, Nykaa had also announced a bonus issue of 5:1 shares, whose ex-date was November 10.

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