Shifting of its bonus issue record date to coincide with the release of locked-in shares raises questions.
Shares of FSN E-Commerce Ventures, parent of cosmetics retailer Nykaa, are trading at around Rs 175 apiece, a sixth of their cum-bonus price. And rightly so, as the bonus issue was announced in the ratio of five shares for every one share held by investors.
The timing of the bonus issue coincides with another important event that will have a bearing on the company’s stock—the release of locked-in shares of its pre-IPO subscribers. During the year-long lock-in following the IPO, promoters and investors were barred from liquidating the securities held by them.
When the bonus was first announced in October, …
Surendar helps lead the newsroom at The Morning Context as executive editor. Over the years, Surendar has worked in industries from pharmaceuticals to diamonds, as well as a stint as an equity analyst. In his long career as a business journalist, he has led teams at The Times of India, India Today and Fortune India. He was part of the founding team at Forbes India and interned at and published in The Times, London.
Executive Editor
surendar@mailtmc.com
Mumbai