Shares of FSN E-Commerce Ventures Ltd., the operator of online cosmetics retailer Nykaa, soared as the company plans to issue bonus shares to its shareholders.
The board of the Falguni Nayar-led company will meet Oct. 3 to consider and approve the issuance of bonus shares to equity shareholders in the ratio "as it may deem fit and seek shareholders' approval by way of postal ballot and such other approval", the company said in its exchange filing.
Shares of the company rose as much as 5.6%, the most since June 23, to Rs 1,350 apiece during the morning session. However, it ended only 0.5% higher at close on Thursday.
Of the 17 analysts tracking the company, 11 maintain a 'buy', four suggest a 'hold' and two recommend a 'sell', Bloomberg data shows. The 12-month consensus price target implies an upside of 21%.
The stock, like most new-age companies that went public last year, has underperformed the indices. While it is trading above its IPO price of Rs 1,125 unlike Zomato Ltd. and One97 Communications Ltd., the stock has fallen nearly 50% from its all-time high of Rs 2,574.
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