PremiumNykaa made a strong market debut last year in October, when the company’s stock had listed at a 79% premium to its issue price at ₹2,001 per share on the BSE
Shares of FSN E-Commerce Ventures Ltd, which runs online beauty and fashion retailer Nykaa, sank 2.9% on Tuesday, pushing the stock below its initial public offering (IPO) price of ₹1,125.
Nykaa’s shares have tumbled 13% in the past month, ending at ₹1,110 apiece on the BSE on Tuesday, ahead of the 10 November expiry of the one-year lock-in period for its pre-IPO shareholders.
In comparison, India’s benchmark index Sensex fell 0.5% on Tuesday. Other tech stocks, including Paytm, Zomato and MapmyIndia, ended the day higher.
“With pre-IPO shareholders’ lock-in set to expire on 10 November 2022, it will be crucial to see if these investors liquidate or continue to hold for further gains," JM Financial had said in a report dated 18 October. “About 67% of share capital or almost 319 million shares are expected to open up for trade on 10 November."
Nykaa made a strong market debut last year in October, when the company’s stock had listed at a 79% premium to its issue price at ₹2,001 per share on the BSE.
Nykaa’s IPO was subscribed 81.78, driven by interest from institutional investors. The company’s shares have hit the lowest point since it started trading last November.
“We believe success will not be easy as Nykaa is not the cheapest place for beauty and personal care products and neither does Nykaa solve the authenticity issue here," ICICI Securities had said in its August 2022 note.
Diwali isn’t going well for the stock of Delhivery, the largest fully-integrated logistics services player in India, either. The company’s shares continued their plunge, falling another 3.82% on Tuesday and hitting record lows of ₹383.75 per share on the BSE.
Delhivery’s shares have lost over 31% in the last five days, after the company on 20 October guided for moderate growth in shipment volumes through the rest of the financial year.
It had raised ₹5,235 crore in its IPO in May.The issue was subscribed 1.63 times. The company’s stock beached the IPO issue price of Rs487 per share for the second time last week since the Gurugram-based startup debuted on the stock exchange.
In a business update the company had warned its shareholders about “high levels of inflation, with average user spends and total active shoppers remaining flat or lower during the ongoing festive season".