Bangas Offloads Rs 1,200 Crore Nykaa-Stake In Block-Deal – Here’s What You Need To Know

Harindarpal Singh Banga, along with Indra Banga, will reportedly offload 2.1 per cent shareholding worth approximately Rs 1,200 crore in the beauty and fashion retail major Nykaa.

The Bangas, who run the diversified The Caravel Group and one of the early investors in Nykaa, are selling 60 million shares at an offer price of Rs 200 apiece, which translates into a 5.5 per cent discount from the last trading session's closing price.

FSN E-Commerce Ventures Ltd, the parent firm of Nykaa, ended 2.1 per cent lower at Rs 211.59 in trade on Wednesday on the National Stock Exchange bourse. The stock has gained 28.7 per cent so far this year.

Goldman Sachs and JP Morgan are managing the transaction. Banga, Nykaa, JP Morgan, and Goldman Sachs did not immediately respond to Mint’s requests for comment.

Banga, the founder of Hong Kong-headquartered Caravel Group, held an 8.7 per cent stake in Nykaa before it got publicly listed in 2021. The Nayar family, who founded the company, still owns majority stake at 52 per cent and has not sold any shares since the IPO.

This latest sale comes post nearly a year when Banga offloaded four crore shares, which translated to 1.43 per cent stake, at Rs 208.30 apiece in August last year.

Following that transaction, his holding fell from 6.40 per cent to 4.97 per cent.

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Nykaa Q4 FY25 Results

For the quarter ended 31 March, Nykaa posted a jump in net profit to Rs 20.28 crore as against Rs 6.93 crore a year earlier. Meanwhile, the Revenue from operations (RoI) rose 23.61 per cent to Rs 2,061.76 crore from Rs 1,667.98 crore in FY24.

Over the past year, the company has launched a record number of global beauty brands, forging partnerships with Yves Saint Laurent, NARS, Kerastase, Eucerin, GHD, Armani Beauty, Supergoop, and Nexxus, among others.

Nykaa is now attempting to make a shift towards a profitable growth trajectory, with an aim for mid-20 per cent annual growth in its beauty and personal care (BPC) business over the next five years. The strategy includes deeper market penetration, premiumization, and enhanced convenience.

The company also aims to upscale its physical presence across tier 3 and tier 2 cities by increasing its brick-and-mortar store count from 237 to above 500 by FY30.