Nykaa shares slump as one-year lockup period of pre-IPO investors ends

Shares of FSN E-Commerce Ventures, which owns beauty retailer Nykaa, slumped more than 8 per cent on Wednesday after the one-year lock-up period on pre-initial public offering (IPO) investors ended.

Its stock ended at Rs 1,040 – down 8 per cent over its previous day’s close. Its shares were trading 3 per cent down during most part of the day, but slumped just minutes before close of trade, probably on the back of a large sell order.

The pattern mirrored the trend seen in the shares of Zomato — the first major start-up to list on domestic bourses — and could be a harbinger of what to expect in other start-ups.