Nykaa Block Deal: Banga Family To Sell $140-Million Stake

Harindarpal Singh Banga and his family, one of the early investors in Nykaa parent FSN E-Commerce Ventures Ltd., are looking to pare 2.1% stake worth $140.3 million or Rs 1,198 crore via block deal, according to the term sheet available on Wednesday.

The block deal was confirmed hours after NDTV Profit reported that the Banga family was looking to pare stake in the fashion e-retailer.

The sale will be carried out at a floor price of Rs 200 per share, which marks a 5.5% discount against the last closing price.

Goldman Sachs Pvt. and JPMorgan India Pvt. are the book runners for the deal.

According to data on BSE, Harindarpal Singh Banga holds 4.97% stake comprising of 14.20 crore shares.

In August 2024, he and Indra Banga had offloaded 4.09 crore shares, representing 1.4% stake through a block deal. Harindarpal Banga, earlier, held 6.4% stake in the beauty and personal care platform as of June 2024.

Nykaa is gearing up for its next phase of profitable growth. The company reported a 40% rise in Ebitda to Rs 470 crore for FY25, while GMV stood at Rs 15,600 crore, growing 28% year-on-year.

The fashion arm, which contributes significantly to the brand’s long-term ambition, is still in the red but improving.

"Fashion is five times the size of the beauty market and we see a huge opportunity. The business is just five years old and already clocked Rs 4,000 crore in GMV," Adwaita Nayar, co-founder of Nykaa and CEO of Nykaa Fashion said in an exclusive interview to NDTV Profit.

The shares of Nykaa closed 2.39% higher at Rs 212 per share. This compares with a 0.35% decline in the benchmark Nifty 50. It has risen 20.81% in the last 12 months and 29.46% year-to-date.

Out of 26 analysts tracking the company, 13 maintain a 'buy' rating, four recommend a 'hold,' and nine suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an downside of 1.1%.