Nykaa Wins Back Investor Confidence As Stock Surges
NDTV
The lifting of curbs on Thursday had sparked speculation that the stock will come under pressure with pre-IPO investors looking for exit.
New-age stock Nykaa surged over 10 per cent in the morning deals today, beating market expectation that the stock will come under intense selling pressure.
F S N Commerce Ventures (Nykaa) made its market debut on November 10 last year after a successful initial public offer (IPO). Regulations had barred pre-IPO investors from trading in shares for one year. It is pertinent to note here this lock-in expiry will have no impact on the business fundamentals of these startups.
The lifting of curbs on Thursday had sparked speculation that the stock will come under pressure with pre-IPO investors looking for exit. In Nykaa, 67.20 percent outstanding shares will become eligible for trading on November 10, according to J M Financial.
The stock moved in tune with the broader market which is trading over 1,000 points higher. Investor sentiment got a boost as easing inflation numbers in the US have raised hopes that an end to Fed Reserve's rate hike is in sight.