Nykaa, the online retailer of beauty brands, may witness a major block deal on Friday, January 12, 2024, as Lexdale International, one of its investors, is likely to sell 2.62 crore shares of the company, according to sources. The total value of the deal is estimated at ₹490 crore, and the floor price for the deal is set at ₹187.8 per share. Morgan Stanley and JP Morgan are the brokers for the deal, sources told a business news channel .
Nykaa’s Q3 performance
The block deal comes after Nykaa reported a 50% increase in consolidated net profit to ₹7.8 crore in the third quarter ended December 2023. The company posted a net profit of ₹5.2 crore in the same period a year ago. The consolidated revenue from operations of Nykaa grew 22.4% to ₹1,507 crore during the reported quarter from ₹1,230.82 crore a year ago.
Nykaa said it saw consistent growth across its three business verticals – Beauty and Personal Care (BPC), Fashion and Home, and Nykaa Man – in the December quarter even as some impact on discretionary consumption was seen due to short-term pressures. Nykaa also expects its BPC vertical to report a GMV (Gross Merchandise Value) growth in the mid-20s for the October-December quarter, while Net Sales Value growth to be around 20 percent on an year-on-year basis.
Nykaa’s stock performance
Shares of FSN E-commerce Ventures Ltd, the parent company of Nykaa, ended at ₹193.70, up by ₹3.30, or 1.73% on the BSE on Thursday, January 11, 2024. The stock has gained over 90% since its listing on November 10, 2023, at an issue price of ₹112 per share.
Nykaa is also a candidate to be included in the MSCI Standard index if the stocks rally between 8-20 percent. The company has a market capitalization of over ₹1 lakh crore as of January 11, 2024.