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Shares of FSN E-Commerce Ventures Ltd, the parent company of online beauty retailer Nykaa, climbed over 16 percent in intraday trade on Friday, a day after the company’s shares began trading ex-bonus.

Last month, the company approved the issuance of bonus shares to its existing shareholders in the ratio of 5:1, which means that Nykaa shareholders will get 5 bonus shares for every one share they hold.

Nykaa had earlier fixed the record date for the bonus issue on November 3, but later postponed it by a week to November 11. The new record date coincides with the expiry of the lock-in period for Nykaa’s pre-IPO investors.

The lock-in period for Nykaa shares expired on 10 November. During a lock-in period, promoters and investors cannot liquidate the pre-IPO securities held by them. Almost 67 percent of Nykaa’s shareholding was released from lock-in at the end of the restricted period.

According to Bloomberg data, about 0.9 percent stake of the company changed hands in separate large trades on Thursday. Shares closed 4.5 percent higher

Nykaa, founded by Falguni Nayar in 2012, listed on the exchanges on November 10 last year at a premium of nearly 78 percent over the issue price of Rs 1,125 per share.

In the quarter ended September 2022, Nykaa posted a net profit of Rs 5.19 crore, a multifold increase compared to a profit of Rs 1.17 crore clocked in the corresponding period a year ago. Consolidated revenue also grew nearly 40 percent year-on-year.

Shares of Nykaa are trading 15.7 percent higher at Rs 217.85.

Also Read: Indian beauty company Nykaa looks to physical retail expansion to meet consumer demand for offline sales