Nykaa board to meet on October 3 over bonus share issuance

The Nykaa board will meet on October 3 to consider and approve the issuance of bonus shares to existing shareholders, the cosmetics and fashion retailer announced on Wednesday.

“We wish to inform you that a meeting of the board of directors of the company will be held on Monday, October 3, to inter alia, consider and approve the issuance of bonus shares to the equity shareholders of the company in the ratio, as it may deem fit and seeking shareholders’ approval by way of postal ballot and such other approval(s), as the board may deem appropriate,” read a regulatory filing by the company to the stock exchanges.

Bonus shares are the additional shares existing shareholders get without any additional cost. The number of shares a shareholder owns decides the number of bonus shares as well. These are the company’s accumulated earnings, which are converted into free shares instead of being paid as dividends.

Also read: Wish I’d had a co-founder to tide over tech struggles initially: Nykaa’s Falguni Nayar

Remarkable growth

During the April-June quarter, Nykaa posted a 43% year-on-year jump in its net profit to Rs 5 crore, against Rs 3.52 crore in the same period a year ago. Consolidated revenue from operations during that period increased 41%, to Rs 1,148.42 crore, while the operating margin stood at 4%, up 70 basis points.

The company’s gross merchandise value (GMV) grew 47% year-on-year to Rs 2,155 crore during the quarter. Within the business, Nykaa’s beauty and personal care segment GMV grew by 39% YOY to Rs 14,88 crore, while the fashion segment’s GMV grew 59% YOY to Rs 582 crore.

On Wednesday, Nykaa’s parent firm FSN E-Commerce Ventures’ shares closed at Rs 1,277.35 apiece on the BSE, down 0.8% from previous day’s close.

(With agency inputs)