Nykaa shares increases by 20% in the first hour of trading when Norges Bank and Aberdeen snap up pre-IPO investors’ shares.
As a result of foreign investors purchasing a total of 2.53 % of FSN Tion Ventures, the owner of the global cosmetics seller, via open market operations the day before, on the ex-bonus day, Nykaa shares increased by about 20 % in the morning session on November 11.
On the Indian Stock Exchange, Nykaa shares traded at a discount of about 20%, at Rs 224.5, compared to their other closing of Rs 188.25. However, the stock has lost over 40% of its value this year. After each lock-in period expired, a few pre-IPO stockholders sold some of their shares, and some of those shares were bought by foreign investors.
The directors moved the record day for the bonus issuance from November 3 to November 11, and the stock began trading former on November 10 in advance of that date. For every position held by a shareholder, the corporation will distribute five bonus shares.
Indian Segantii Norges Bank of Norway bought 39.81 lakh shares for the Government Petroleum Fund at Rs 173.35, and Aberdeen Standards Asia Focus Plc bought 42.72 lakh shares for Rs 173.18. Mauritius bought 37.92 lakh units at an average price of Rs 171.75 per share. However, the wealthy man and base of Ambuja Cement, Narotam S. Sekhsaria, left the business by selling all 1.47 crore shares (3.11 % equity) in Nykaa for Rs 173.7 each.
At 10.14 am, Nykaa was up 15% and selling at Rs 215.70 on the NSE. Shares of Nykaa soared 19.53 percent to Rs 224.65 in early trade Thursday, buoyed by the news and a rising market. The stakes are trading below the 200-day moving average and the 5-day, 20-day, 50-day, and 5-day moving averages. The stock has dropped 38.08% in 2022 and 41.27% over the course of a year.
On November 26, 2021, it reached a sharp peak of Rs 429.86; on October 28, 2022, it got a 52-week bottom of Rs 162.91 on the BSE.
A total of 129.14 lakh shares in the company were traded for total revenue of Rs. 245.32 crores. The company’s market value increased to Rs 61,935 crores on the BSE. On the other hand, according to the bulk deal available data with the NSE and BSE, three entities—Lighthouse India Financing III, Mala Gopal Gaonkar, and Narotam S Sekhsaria—sold 2,84,34,390 shareholdings of Nykaa’s parent corporation at an expected value of Rs 171.75–Rs 173.70 per share for Rs 491.35 crore thru the open market transactions.
Strong Q2FY23 results, accompanied by a bonus situation along with preconceptions of easing inflation, have led to a sharp rebound in Nykaa’s company’s stock from recent lows, according to Pavitraa Shetty of Tips2trades. “After a truly awful stock price achievement after enumerating where the stock price rectified over 50% out of its listing price,” she said.
Targets of Rs 248–260 could be reached in the near future if the daily closing rises over Rs 218. Investors could purchase when prices are near the targets mentioned, around Rs 198–200. According to Tirthankar Das, Economic & Derivative Researcher, Retail, Ashika Stock Broking, the recent rise is only transient.
“The creation of consecutive lower lows on the weekly and daily timescales shows that the stock’s trend has been consistently negative. However, despite all of this pessimism, prices are severely oversold on a daily basis. As a result, prices may experience a solace rally or consolidation before resuming their downward trajectory.
The upward movement over the past few sessions has been carefully channeled, with immediate opposition coming in at about 250 from the pattern’s upper panel, which happens to correspond with the swing high from October 22. And until it crosses the mentioned resistance barrier, the recent rise of much more than 20% may only be temporary in nature.
The 14-period RSI and daily MACD have produced a buy signal that has moved above the nine-period average, reinforcing the positive bias. However, if it is unable to cross 250, the outlook would remain unfavorable, and the likelihood of a reverse rally towards 150-165 is still very likely. Nykaa’s stock price increased 20% today after foreign investors purchased a total of 2.53% of the company that runs the multi-brand cosmetics seller FSN E-Commerce Ventures through open market operations.
After the one-year clamp period expired, a few pre-IPO stockholders sold some of their shares, and some of them were bought by foreign investors. Good quarterly earnings and the stock’s ex-bonus status contributed to the stock’s increase on Thursday.
For every equity position held by stockholders, Nykaa will distribute five bonus shares. Among its rivals, including Myntra, Purplle, and MyGlamm, Nykaa is the only Beauty and Personal Care (BPC) provider that is profitable online. Due to the asset-light nature of its BPC business, it commands a higher margin profile. We think Nykaa’s production volume in BPC is expected to continue moving forward, thanks to a growing share of private labels, increasing marketing support revenue, and decreasing the complete price.
Due to its reputation for trust and dependability in the premium products area, critical data like total visits and hours put in to know that Nykaa is far ahead of its competitors. It is a request that investors should see any decline in Nykaa’s stock price be an investment chance in the long run.
The price of Nykaa shares is over 50% below their 52-week high of Rs 428.95. Ten of the 17 experts who have given the company a rating have suggested a strong buy; the other seven have recommended purchases, holds, and sells.
Edited by Prakriti Arora