In a significant move, Lexdale International, the parent company of FSN E-Commerce, which owns the popular beauty e-commerce platform Nykaa, offloaded 2.62 Crore shares in a block deal at a price of INR 188.83 each. According to BSE data, this transaction amounts to a substantial INR 495.44 Crores. Following this development, Nykaa’s shares experienced a decline, closing 3.15% lower at INR 187.60 on the BSE on Friday.
The block deal involved a significant portion of FSN E-commerce, representing a 0.9% stake in the company. While Nykaa’s shares were trading at INR 188.75 apiece during the session, the total transaction value was reported to be INR 516 Crores, as per a CNBC-TV18 report. However, the report did not specify the buyers and sellers involved in the deal.
Earlier reports on January 11 had hinted at Lexdale International’s intention to offload 2.62 Crore shares of Nykaa through open market transactions. The subsequent block deal seems to have followed through on this plan.
Nykaa, in its quarterly performance update, reported consistent growth across its three business verticals in the third quarter of FY24. Despite acknowledging short-term challenges in discretionary consumption, the company anticipated mid-twenties gross merchandise value (GMV) growth in Q3 FY24 for the beauty and personal care segment, with the Fashion vertical projected to experience approximately 40% GMV growth.
Throughout 2023, Nykaa faced challenges from rising competition, high inflation, and escalating customer acquisition costs. Despite these hurdles, the stock saw a partial recovery by the end of the year and has been consistently rising in the early part of 2024. Over the last year, the company’s shares have surged by more than 24%, with an additional 11% gain in the first part of 2024.
In the September quarter (Q2) of FY24, Nykaa’s consolidated net profit showed impressive growth, jumping 50% to INR 7.8 Crores from INR 5.2 Crores in the previous year’s quarter. This increase was attributed to growth across business verticals and cost control measures.
