Nykaa shares tumble over 8% as 1-year lockup period ends

Selling pressure from pre-IPO investors feared in four start-ups this month

- SAMIE MODAK

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

Its stock ended at ₹1,040 - down 8.13 per cent over its previous day's close. Its shares were trading 3 per centdown 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.

In July, shares of the restaurant aggregator and food delivery start-up had tanked more than 10 per cent on the day its one-year lockup had ended.