Shares of FSN E-Commerce Ventures Ltd, which runs online beauty and fashion retailer Nykaa, sank 2.9% on Tuesday, as the stock plunged below its initial public offering (IPO) price of Rs 1,125.
Nykaa’s shares have tumbled 13% in the past month to Rs 1,110 on Bombay Stock Exchange (BSE) as of 4 pm on Tuesday, ahead of the November 10 expiry of the one-year lock-in period for its pre-IPO shareholders.
“With pre-IPO shareholders’ lock-in set to expire on November 10, 2022, it will be crucial to see if these investors liquidate or continue to hold for further gains,” JM Financial has said in a report dated October 18.
“67% of share capital or almost 319 million shares are expected to open up for trade on November 10, 2022”
Nykaa made a strong market debut last year in October when the company’s stock was listed with a 79% premium on the issue price at Rs. 2,001 per share on the BSE.
Nykaa's IPO was subscribed 81.78, mainly helped by huge 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 authenticity issue here,” ICICI Securities had said in its August 2022 note.
Diwali isn’t going well for logistics unicorn Delhivery stock either.
The company’s shares continued their plunge, falling another 3.82% on Tuesday and hitting record lows of Rs 383.75 apiece on BSE.
Delhivery’s shares have lost 31.5% in the last five days, after the company shared a guidance of moderate growth in shipment volumes through the rest of the financial year on October 20.
Delhivery, the largest fully-integrated logistics services player in India, had raised Rs 5,235 crore in its IPO in May. The issue was subscribed 1.63 times.
The company’s stock price breached its initial public offering (IPO) issue price of Rs 487 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”.
In comparison, benchmark index Sensex fell 0.5% on Tuesday. However, other tech stocks including Paytm, Zomato, MapmyIndia ended the day in green.
