Nykaa’s ‘Unlock’ Trade High On Speculation, Low On Delivery

During last week’s fall, high volumes coincided with high delivery. But the recovery in the last two days has been on low delivery, pointing to speculative trading ahead of Nov. 10, when the one-year lock-in period ends for shares held by pre-IPO investors.

These investors have the option of selling their shares from Nov. 10 onwards. Since the bonus share issue now coincides with the end of anchor lock-in, the seller will get the cum-bonus share price if sold on Nov. 10, but the buyers will get shares at ex-bonus price.

The company changed the record date for the bonus share issue from Nov. 3 to Nov. 11. It did not cite a reason for it.

Foreign portfolio investors hold 4.54% in the company post IPO. 64.23% of their shareholding was locked in for a year and opens for trading on Nov. 10.

Over 40.13 crore shares will be out of lock-in at the end of Nov. 9, as per the exchange notification. Of this, 18.68 crore shares belong to public shareholders.

Five key FPIs, holding 9.39% or 4.3 crore shares in the company, will see their shares open up from lock-in. Others include non-institutional pre-IPO investors.