Intraday Spotlight: Nykaa rises 4 per cent with the litigation settlement

Positive news for shareholders after stock losing 50 per cent

Nykaa (FSN E-Commerce Ventures Ltd) today has zoomed by about 3.8 per cent with the settlement of litigation with L’Oreal S.A. The stock opened with a strong gap up of over 4.5 per cent at Rs 1,392 while it has previously closed at a price of Rs 1,332.05 on the BSE. The stock is currently trading near the level of Rs 1,383 as of 12:45 pm.  

In November 2019, L’Oreal S.A. had filed a civil suit for alleged copyright infringement and passing-off against Nykaa. This litigation was disclosed in the IPO prospectus. However, the litigation has now been settled and no compensation/penalty is to be paid by Nykaa.  

Nykaa IPO had created a lot of buzz during its listing. Eventually, it had become an example and a lesson for retail investors when it comes to making an investment decision. The stock had a listing price of about Rs 2,206 and even made a high of Rs 2,574. From there, it had tumbled to the levels of Rs 1,300 and thereby losing about 50 per cent in value. After being so badly hit, there is some good news for the company and it is trading high today.