As Nykaa enjoys a strong run on the stock market, early investor Harindarpal Singh Banga is reportedly planning to sell a 1.4% stake in the beauty and personal care e-commerce giant.
Sale Price Set Below Market Rate:
According to a CNBC-TV18 report, Banga is planning to sell the shares at a floor price of INR 198 apiece, which is 5.9% below the closing price of INR 210.40 on Thursday (August 22). The shares sold will be subject to a 45-day lock-in period.
Banga, the founder and CEO of The Caravel Group, owned 18.28 crore shares, accounting for a 6.4% stake in Nykaa at the close of the June quarter.
This will mark the second significant share sale for the startup in the current quarter (Q2 FY25). Earlier in July, the Canada Pension Plan Investment Board (CPPIB) sold 1.47 crore shares of Nykaa for INR 256.4 crore through a block deal, offloading the stake at INR 174.04 per share.
Nykaa Reaches 52-Week High:
This comes at a time when Nykaa’s shares are on the rise. Earlier this week, the Falguni Nayyar-led startup hit a new 52-week high of INR 228.5 on the BSE during intraday trading on August 21.
Overall, the stock has risen by nearly 29% year-to-date.
Continue Exploring: Nykaa hits new 52-week high as shares rally 19% to INR 228.5
Q1 Financials Show Strong Growth:
Earlier this month, Nykaa reported a strong performance for Q1. Its consolidated net profit surged 152% to INR 13.6 crore for the quarter, up from INR 5.4 crore in Q1 FY24. Operating revenue also increased by 22.8%, reaching INR 1,746.1 crore, compared to INR 1,421.8 crore in Q1 FY24.
Continue Exploring: Nykaa’s Q1 FY25 net profit soars 152% to INR 13.6 Cr; revenue up 22.8%
Meanwhile, the startup announced plans to increase its stakes in Dot & Key and Earth Rhythm. It will acquire an additional 39% stake in its subsidiary Dot & Key for INR 265.3 crore and will purchase a further stake in the beauty brand Earth Rhythm for INR 44.5 crore.
Following the disclosures, brokerage Nuvama upheld its ‘buy’ recommendation on the stock and raised its price target to INR 220, up from INR 203 previously.
