Nykaa share price jumps about 7% as company appoints a new CFO
1 min read . Updated: 24 Jan 2023, 01:45 PM IST
Premium- The stock opened marginally higher at ₹125.50 versus previous close of ₹124.75 and continued to gain to reach a high of ₹134.20, but pared some gains later
The share price of Nykaa parent, FSN E-Commerce Ventures, jumped nearly 7%, or ₹8.50, to ₹132.70 a day after the company announced the appointment of P Ganesh as its Chief Financial Officer.
Ganesh is a successor of Arvind Agarwal who resigned in November last year.
The stock opened marginally higher at ₹125.50 versus previous close of ₹124.75 and continued to gain to reach a high of ₹134.20, but pared some gains later.
The company's share price has been in the news attracting criticism from investors over its's IPO valuations due to the fall in the stock since its listing as pre-IPO investors sold stakes after expiry of mandatory lock-in.
Read all market-related stories here
The stock fell for eight consecutive sessions until January 24. On Monday, Nykaa shares closed at ₹124.75 apiece down by 1.96% on BSE.
The company's share price hit a 52-week low of ₹120.75 on January 23, 2023 and a 52-week high of ₹332.30 on January 24, 2022.
In Q2FY23, the company posted a multi-fold increase in its consolidated net profit at ₹5 crore as compared to ₹1 crore in the same period a year ago.
Nykaa has fallen over 62% in last 1 year. In comparison, Zomato and Paytm have lost 55% and 43%, respectively, reported MintGenie.
The company raised ₹5,350 crore through initial public offering (IPO) in November 2021, with an over 82 times subscription. Meanwhile, Zomato IPO was subscribed 38 times and Paytm IPO was at 1.89 times.
Nykaa was cheered by the market and listed at an 80 percent premium to its IPO price as against Zomato, which listed at 53 percent. Paytm, on the other hand, listed at a 9 percent discount.
“Companies such as Nykaa, Paytm, and Zomato have been adversely affected due to a lack of risk-on strategy in the market. Similarly, tech-driven companies in the US have also gone through a similar phase. However, we anticipate that when risk-on strategies are adopted, tech companies that have seen an erosion will see value bank occur at a lower level," Mohit Batra, Founder & CEO MarketsMojo