Nykaa free share issue announced at a ratio of 1:5. Check check-in date

Nykaa announced on Monday that its board of directors at its meeting held today approved the issuance of free shares of the company in a ratio of 1:5, i.e. the company will issue a bonus of 5 shares for each share held on the record date. Shares of Nykaa were trading up more than 7% on BSE at 1,366 each.

“We hereby inform that the Board of Directors, at its meeting of October 3, 2022, notably approved the free issue of capital shares in the proportion of 5 (Five) fully paid-up shares of Re 1/- each for 1 (One) of the fully paid shares of Re 1/- each held by shareholders of the Company on the record date, subject to shareholder approval by postal ballot,” Nykaa informed in a exchange file.

The company said the issuance of free shares will be out of the Securities Premium Account available as of March 31, 2022. Free shares are additional fully paid shares issued by a company to its existing shareholders. The actual number of free shares to be issued and the share capital after free issue will be determined based on the paid-up share capital on the record date, the company added.

In addition, the Company has set Thursday, November 03, 2022 as the record date for the purpose of determining members eligible for bonus shares. The estimated date on which these free shares would be credited/sent would be within two months from the date of approval by the Board of Directors, i.e. no later than December 02, 2022.

The Board also approved the reclassification of the authorized share capital of 325 crore comprising 275 crore equity shares and 50 crore preferred shares for 325 crore consisting of 325 crore Equity Shares, subject to shareholder approval by mail ballot.

Founded in 2012 by former investment banker Falguni Nayar, the company has a diverse portfolio of beauty, personal care and fashion products, including its branded manufactured goods across its two business segments, Nykaa and Nykaa Fashion.

The company’s shares were listed on the BSE and NSE stock exchanges in November last year. Shares of Nykaa are so far down more than 35% in 2022 (YTD), while they are down around 43% since listing.

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Sallie R. Loera