Nykaa Share Price Tanks 5% After Rs 1,200 Crore Block Deal - Details

Shares of FSN E-Commerce Ventures Ltd, the parent company of beauty and fashion retailer Nykaa, slipped sharply on Thursday, weighed down by a large block deal involving one of its early investors. The stock fell nearly 5 percent in early trade, touching an intraday low of around Rs 201 on the NSE, amid heightened selling pressure on the bourses.

As per media reports, Harindarpal Singh Banga along with Indra Banga, offloaded approximately six crore shares in the company through bulk transactions. The deal was executed at a floor price of Rs 200 per share, which is around around 5 percent below Wednesday’s closing price of Rs 211.59—triggering a swift reaction from investors.

The total value of the transaction is estimated to be in the range of Rs 1,200 crore, as per multiple media reports. Investment banks Goldman Sachs (India) Securities and JP Morgan India were reportedly appointed as placement agents for the deal.

Harindarpal Singh Banga, the founder of the Hong Kong-based Caravel Group, held an 8.7 per cent stake in Nykaa prior to the company’s stock market debut in 2021. The Nayar family, who established the brand, continues to hold a controlling stake of 52 per cent and has not divested any shares since the IPO.

This recent sale follows a similar move nearly a year ago, when Banga sold four crore shares—equivalent to a 1.43 per cent stake—at a price of Rs 208.30 per share in August. That transaction reduced his ownership from 6.40% to 4.97%.

Also Read: Bangas Offloads Rs 1,200 Crore Nykaa-Stake In Block-Deal – Here’s What You Need To Know | Republic World

Robust financial results

Despite Thursday’s share price drop, Nykaa has posted solid financial performance in recent quarters. The company reported a three-fold jump in net profit for the March quarter, which rose to Rs 20 crore. For the full financial year, net profit more than doubled to Rs 66 crore, underpinned by continued strength in its beauty and personal care verticals.

Expansion plans on track 

Over the last one year, Nykaa has introduced an unprecedented number of international beauty labels to the Indian market through new partnerships with globally renowned names such as Yves Saint Laurent, NARS, Kerastase, Eucerin, GHD, Armani Beauty, Supergoop, and Nexxus, among others.

As it enters its next phase of expansion, the company is focused on driving sustainable profitability. It is targeting a mid-20 percent compound annual growth rate in its beauty and personal care (BPC) segment over the next five years.

In parallel, Nykaa is looking to strengthen its offline footprint by scaling up its presence in tier 2 and tier 3 cities. The retailer plans to grow its physical store network from the current 237 locations to over 500 by FY30.