NEW DELHI: The share price of FSN E-Commerce Ventures, the parent company of Nykaa, has fallen below the stock’s IPO (initial public offering) price for the first time since its listing last year as the mandatory one-year lock-in period of pre-listing investors is about to end.
Nykaa on Tuesday closed at Rs 1,111, down 2.9 per cent over the previous day’s close. On November 10, 2021, the beauty & cosmetic giant made a bumper debut on the domestic bourses with a 79 per cent premium over its IPO price of Rs 1,125 and in the days to follow, the stock touched a 52-week high of `2,574 on the NSE.
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Since then the stock has lost over half of its value and in 2022, the stock has lost 47 per cent. Nykaa’s fall is in tandem with the fall seen across loss-making digital firms like Paytm, Zomato and Policybazaar as investors believe it will take years for these firms to break even and report a profit.
The share price of PB Fintech, PolicyBazaar, has plunged 66 per cent from its listing price of Rs 1,150. On Tuesday, it fell over 2 per cent to close at Rs 386 on the BSE. If Nykaa or PolicyBazaar repeats the Zomato story when the latters’ one-year mandatory one-year lock-in period ends, the stocks may bleed more.