Lexdale International is reportedly seeking to divest 2.62 crore shares of the beauty e-commerce giant Nykaa through open market transactions.
Sources informed CNBC-Awaaz that the transaction is expected to be valued at a total of INR 490 crore. Brokerage firms Morgan Stanley and JP Morgan are set to oversee the deal.
Earlier this week, Nykaa, in its quarterly performance update, stated that it experienced steady growth across its three business verticals during the third quarter (Q3) of the financial year 2023-24 (FY24).
Continue Exploring: Nykaa’s fashion vertical takes the lead with anticipated 40% YoY GMV growth in Q3 FY24
The Falguni Nayar-led company reported that although discretionary consumption encountered short-term pressures in the quarter, it projected the beauty and personal care (BPC) arm’s gross merchandise value (GMV) growth in Q3 FY24 to be in the mid-twenties. Additionally, the fashion vertical’s GMV was anticipated to grow by around 40%.
Nykaa’s Potential Inclusion in MSCI Smallcap Index:
Nuvama Alternative & Quantitative Research suggests that Nykaa might join the MSCI Smallcap index if the stock experiences a surge ranging from 8-20%.
Continue Exploring: Nuvama analysts bullish on Mamaearth for MSCI Smallcap Index, Nykaa gaining momentum for Global Standard Index
Amidst escalating competition, elevated inflation, and a growing customer acquisition cost, the beauty and personal care (BPC) giant faced challenges throughout 2023. However, by the year’s end, the stock showed signs of recovery and has maintained an upward trajectory since then. Over the past 12 months, the company’s shares have surged by over 24%, with an additional 11% gain in the first part of 2024.
It should be emphasized that the company did not observe any significant block deals in the year 2023.
The increase in stock price follows a year marked by high-level departures, market fluctuations, and intensified competition from both established players and newcomers like Reliance-backed Tira, Tata CLIQ, and others.
Shares of Nykaa closed at INR 193.70 on the BSE, registering a 1.73% increase on Thursday (December 11).