Nykaa shares crack further below IPO price ahead of Q2 results

FSN E-commerce Ventures, the company that houses beauty and fashion ecommerce platform Nykaa, saw its share price crack further on Friday. The share price, which had breached the IPO price earlier this week, sank more than 6% in early morning trade to Rs 983.5 apiece.

This comes after Nykaa disclosed last evening after trading stopped for the day that it had named a new chief technology officer as the incumbent was moving out of the firm.

Nykaa said Rajesh Uppalapati is joining as the new CTO from November 1, replacing Sanjay Suri. Uppalapati brings over two decades of technology experience, much of it from his various roles at Amazon. Prior to joining Nykaa, his immediate previous employment was with Intuit India.

CTOs are considered a critical CXO role for tech ventures and a new person at the helm could have raised eyebrows for the investors leading to a decline in stock price. The move, which comes ahead of the financial results for the last quarter, is perhaps being seen as a negative signal of the immediate financial performance.

The company is scheduled to share its financial results on November 1.

Nykaa had gone public with great fanfare, catapulting its founder Falguni Nayar among the richest self-made women billionaires. Its shares listed at a premium of 79% against its issue price of Rs 1,125 apiece last November.

Soon after, it crossed Rs 2,500 mark. But with the wider bloodbath in tech stocks globally it sank this year. The company did try to break out again in April, only to sink again. The stock has halved over the last six months.

Nykaa had reported revenues of Rs 1,148 crore with net profit of Rs 5 crore in the first quarter ended June 30. This marked a decline in net profit sequentially.