Shares of FSN E-commerce, the parent entity of the beauty e-commerce platform Nykaa, saw a decline of up to 2.5% following a likely huge block deal.
Nykaa’s shares were being traded at INR 188.75 apiece at 11:30 am on Friday.
According to a CNBC-TV18 report, approximately 2.7 crore shares of FSN E-commerce, equivalent to a 0.9% ownership stake in the company, were traded in a block deal on Friday. The total value of the transaction amounted to INR 516 crore.
Nevertheless, the report was unable to determine the identities of the buyers and sellers participating in the transaction.
On Thursday, reports indicated that Lexdale International was seeking to sell 2.62 crore shares of Nykaa through open market transactions.
Continue Exploring: Lexdale International to divest 2.62 Crore Nykaa shares valued at INR 490 Crore
Nykaa’s Quarterly Performance Update:
Earlier this week, Nykaa, in its quarterly performance update, reported sustained growth across its three business verticals during the third quarter (Q3) of FY24.
During the quarter, the company recognized short-term challenges impacting discretionary consumption. Nevertheless, it foresees the beauty and personal care segment to attain mid-twenties gross merchandise value (GMV) growth in Q3 FY24, while the Fashion vertical is expected to undergo around 40% GMV growth.
Throughout 2023, the beauty and personal care giant encountered challenges arising from increased competition, elevated inflation, and escalating customer acquisition costs. Despite these obstacles, the stock witnessed a partial recovery by the end of the year and has been steadily increasing ever since.
Over the last one year, the company has seen its shares surge by more than 24%, with an additional 11% gain in the first part of 2024.
In the September quarter (Q2) of FY24, Nykaa witnessed a 50% increase in its consolidated net profit, reaching INR 7.8 Cr compared to INR 5.2 Cr in the corresponding quarter of the previous year. This growth can be attributed to advancements across business verticals and effective cost control measures.