Nykaa's share price still up from IPO despite recent losses

By

Isabelle Crossley

Published
May 31, 2022

Nykaa’s results for the fourth quarter of the 2022 financial year showed widening net losses and its share prices dropped but it is still trading above its initial public offering price and has planned retail and category expansion. 

“Nykaa share price is up from IPO price even today,” the business’ founder and CEO Falguni Nayar told ET Now in an interview. “It is the listing pop from where some amount of share price decline has happened but Nykaa continues to be in positive territory even from an IPO price.”

The business sees continued expansion as the route to boosting positive growth. This year will see brick-and-mortar expansion, expansion of its business-to-business segment, and logistics expansion among other initiatives. 

“As far as investment for the future is concerned, I am a big believer that every company must invest for the future and coming out of Covid, it is the time to push the pedal on investments,” said Nayar. “So be it our warehouses, be it our stores, we are rolling out more stores than we did during the previous year as well as new customer acquisition.” 

Nykaa is focusing its investments on its online business-to-business segment as well as its men’s offering Nykaa Man. “Nykaa has been very transparent and I believe that companies have to invest in future growth and the company will come out stronger in the long run with this,” said Nayar. “I do not think there is any weakness. I want investors to understand the investments we are making for the future.”