Shares of FSN E-Commerce Ventures Ltd (Nykaa) jumped over 6 per cent in Friday’s trade on heavy turnovers amid likely block deals as more than 4 crore shares changed hands. Investors Harindarpal Singh Banga and his wife, Indra Banga, likely sold a 1.4 per cent stake in the company through a pre-market block deal.
According to the term sheet issued by the bankers, the Bangas plan to sell their stake at a floor price of Rs 198 apiece, which represents a 5.9 per cent discount to Thursday’s closing price of Rs 210.
Harindarpal was an early investor in Indian billionaire Falguni Nayar’s fashion giant Nykaa and held a 6.4% stake. He founded The Caravel Group, a global conglomerate primarily engaged in resources trading, maritime services, and asset management.
Other notable pre-IPO investors in Nykaa include Narotam Sekhsaria, Sunil Kant Munjal, Mala Gaonkar, Steadview Capital, and TPG Growth.
Shares of Nykaa rallied 19% to its new all-time high of Rs 228.50 on BSE on Wednesday, its largest intraday gain for the company since November 2022.
Nykaa’s shares have demonstrated a strong performance this year, rising by 23 per cent so far, significantly outpacing the Nifty index, which has returned around 14 per cent over the same period. Over the last 12 months, the company’s shares have gained an impressive 60 per cent, showcasing robust investor confidence in the direct-to-consumer (D2C) online beauty retailer.
The investor enthusiasm in Nykaa’s stock was also fueled after the company reported a Rs 13.64 crore profit in the first quarter ended June 2024, displaying a 152 per cent YoY jump. The revenue from operations for the reporting quarter stood at Rs 1,746.11 crore, which was also up by 23 per cent from Rs 1,421.82 crore reported in the corresponding quarter of the previous financial year.
Nykaa’s shares have rallied 60 per cent in the last one year while in the last six months, the stock has surged 42.4 per cent. In the current year so far, the shares have increased by 26 per cent.
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