Is Nykaa’s bonus issue is ‘unethical’ Pratice?

The good, bad, and ugly of Nykaa’s bonus issue

Nykaa’s Finance team has effectively put a massive blockade for their pre-IPO investors and the retail investors as Short-term capital gains tax may force investors to hold onto shares because of which they will have trouble selling those shares

but as it turns out that even then, Nykaa’s 5:1 bonus issue averted a steep stock price fall as the pre-IPO investors sold those shares and criticized Nykaa bouns issue as unethical practice for its pre-IPO Investors

but now along with the share price going down the reputation of Nykaa’s Founders has taken a hit which is why you will see a lot of Articles bashing or questioning the ethics of the Nykaa team

Now I don’t know if this is right or wrong but there are two ways to look at it.

Is Nykaa’s bonus issue is ‘unethical’ Pratice

Number one Nykaa did not do the right thing because these investors were the reason why they could actually run the company expand rapidly challenge Amazon and go IPO and become a billion-dollar company.

The second way to look at it is that Nykaa did not do anything illegal, isn’t it? and as a company, all they did was to protect their share price from falling which would affect retail investors like you and me and considering the upcoming recession every company’s primary objective is to survive by hook or crook, and for a company like Nykaa

which has already given out extraordinary returns to its pre-IPO investors until they operate within this legally binding everything is fair isn’t it? but as I said regardless of whether this is right or wrong for us as students of business it’s very very important to know about these basic Frameworks of startup funding IPO and capital gains.

Read More: Mullen Automotive (MULN Stock) News Today

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