Nykaa Bonus SHare Issue: Here's
all you need
  To know

Shares of Nykaa are in focus after the company announced a bonus share issue. The stock is under selling pressure after the bonus shares were listed on the exchanges

Nykaa Shares In Focus!

Bonus shares are additional shares given to the current shareholders

What Are Bonus Shares?

Nykaa announced a bonus issue in the ratio of 5:1. This means that Nykaa shareholders will get 5 bonus shares for every one share they hold

5:1 Nykaa Bonus Issue

When the share price of a company is too high, it becomes difficult for new investors to buy shares of that particular company. Companies issue bonus shares to encourage retail participation

Why Do Companies
Issue Bonus Shares?

A stock split happens when the shares are divided into two or more, as per the split ratio. The face value of the share changes with the stock split

Difference Between
Stock Split And
Bonus Issue

On November 16, the shares of Nykaa tanked over 9 per cent to hit a day's low of Rs 175 on BSE after the bonus shares got listed on the exchanges

Nykaa Tanks 9%

Brokerages remain bullish on the stock. However, experts said that the fall can be attributed to the issue of bonus shares and the timing, which is hurting retail investors a lot due to short-term and long-term tax liabilities arising out of the bonus issue

Brokerages On
Nykaa Stock

Market veteran Shyam Sekhar termed Nykaa's decision to declare bonus shares as "a bit odd" and raised doubts about the intent of the company board

What Experts Say

Stock mentioned in the story is for information purpose only. Investors or market participants should consult their financial advisors before taking any position


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Story By: Tanya Aneja
Designed By: Mohsin Shaikh

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