Market veteran Shyam Sekhar said the FSN E-Commerce Ventures (Nykaa) board decision to declare bonus was a bit odd in terms of intent and timing. In a series of tweets, Sekhar said the timing of the bonus issue raises serious doubts on the intent of the company board.
In a tweet, the Founder and chief ideator & at ithought Advisory asked what did Nykaa achieve in its business to reward shareholders within a year of listing. Sekhar said the Nykaa board pushed for a bonus that hurt retail investors.
"Clearly, Nykaa fails the smell test. When a company with founders from the investment banking industry does this, it is like a 9/11 fire alarm for corporate governance in India. Clearly, the independent directors have failed in their duty. Shareholders are victims. Alarm must ring," he tweeted.
Here's what he said in a series of tweets:
Shares of Nykaa went ex-bonus in 5:1 ratio on November 10. The scrip rose 5 per cent on Thursday and was up 11 per cent intraday on Friday.
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