Shares of Nikaa’s parent company – FSN E-Commerce Ventures hit a low of Rs 161.90. The beauty e-retailer’s share price was down from a low of Rs 162.91 on October 28, 2022. In comparison, the S&P BSE Sensex was up 0.45 percent at 61,612 at 11:26 AM.
In the last two trading days, Naika’s share price fell 5 percent after Kravis Investment Partners II offloaded 36.7 million shares of the company at a price of Rs 171 apiece. BSE, shows the exchange information.
On Thursday, December 15th, 2022, large ticket investors belonging to the FPI and DII categories bought new stakes in Nika. According to BSE block deal details, Goldman Sachs, Mire Asset Mutual Fund, ICICI Prudential Life Insurance Company and Canada Pension Plan Investment Board bought stake in FSN E-Commerce Ventures.
Meanwhile, in the past one month, the stock has fallen 16 percent after the resignation of the company’s chief financial officer (CFO) Arvind Agarwal. Agarwal resigned on November 25, Nika said in a November 22 regulatory filing.
On the same day, Lighthouse India, a private company, sold 18.44 million shares of the company worth Rs 336 crore in a block deal. Aditya Birla Sun Life Mutual Fund, Axis Mutual Fund, ICICI Prudential Mutual Fund and foreign portfolio investors such as BofA Securities, BNP Paribas Arbitrage and Society Generale were buyers of domestic mutual funds in block deals, the data showed.
Meanwhile, in the past one year, Nikka has underperformed its share price by 54 percent compared to an 8 percent rise in the S&P BSE Sensex. It has settled 62% from its record high of Rs 429 (adjusted with 5:1 bonus share) on November 26, 2021.
Nika has emerged as one of India’s leading lifestyle-focused consumer technology platforms.
According to a Bloomberg report, the relentless assault on stocks of home-grown tech startups since their highly-promised initial public offerings (IPOs) last year has led some to resort to surprising tactics to arrest the slide, prompting scrutiny from investors and investors alike. Marketing professionals. Nykaa announced a bonus share issue in November that coincided with the end of an IPO lockup on key investors, which could extend the stock’s fall.
While within the rules, many market experts say the measures show the kind of obsession newly listed companies have with their stock prices, Bloomberg reported. Click here for the full report
“Nykaa is a nimble online business; its success is partly due to the lack of aggressive competitors (this is slowly changing). Lack of previous ad revenue, indirect monetization potential forces us to adjust the valuation compass somewhere between an online business and a pure platform,” HDFC Securities analysts said. In a cover report dated November 2, the brokerage firm said it had a ‘Sell.Rs 133 (adjusted with bonus) rating on the stock.