Public Shareholder Sells 1.43% Stake in Nykaa for Rs 851 Crore

A public shareholder of FSN E-Commerce Ventures Ltd, which owns the beauty and personal care brand Nykaa, offloaded a 1.43 per cent stake in the company for Rs 851 crore on Friday. According to bulk deal data on the BSE, Harindarpal Singh Banga sold over 4 crore shares at Rs 208.30 each, amounting to Rs 851.50 crore.

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After this transaction, Banga's shareholding in Nykaa decreased from 6.40 per cent to 4.97 per cent. Harindarpal Singh Banga is a commodities billionaire and chairman of Hong Kong-based Caravel Group. He was an early investor in Nykaa, which went public in 2021.

Nykaa's Financial Performance

FSN E-Commerce Ventures recently reported a significant increase in its consolidated net profit for the June quarter of FY25. The net profit more than doubled to Rs 13.64 crore compared to Rs 5.42 crore in the same period last year.

The company's revenue from operations also saw a rise of about 23 per cent, reaching Rs 1,746.11 crore from Rs 1,421.82 crore a year ago. This growth was primarily driven by Nykaa's beauty segment, which reported a revenue increase of about 23 per cent to Rs 1,593.51 crore in the June 2024 quarter from Rs 1,298.36 crore a year earlier.

Stake Sale and Market Reaction

Nippon India Mutual Fund MF, HSBC MF, Invesco MF, Kotak Mahindra MF, HDFC Standard Life Insurance, ICICI Prudential Life Insurance, Goldman Sachs and Morgan Stanley were among the buyers of FSN E-Commerce's shares.

Other buyers included Societe Generale, Abu Dhabi Investment Authority, Copthall Mauritius Investment, AL Mehwar Commercial Investments LLC, Caisse De Depot ET Placement DU Quebec, India Acorn ICAV and Bajaj Allianz Life Insurance.

Following the stake sale news, Nykaa's stock settled 7.84 per cent higher at Rs 226.90 apiece on the BSE.

Growth in Fashion Segment

The fashion segment of Nykaa also showed positive growth. Revenue from this segment grew by about 21 per cent to Rs 148.6 crore from Rs 122.45 crore a year ago.

This overall performance highlights Nykaa's strong market presence and growth potential in both beauty and fashion segments.

The recent financial results and market activities reflect Nykaa's robust position in the e-commerce sector and its ability to attract significant investments from prominent financial institutions.