Shares of FSN E-Commerce Ventures (Nykaa) surged over 9% in intra-day trading to its 52-week high on August 23 after 1.4% of the company's equity, or 4.09 crore shares, changed hands through block deals. The likely seller was pre-IPO investor Harindarpal Singh Banga. Media reports suggest Banga and his wife aimed to offload their stake at a floor price of ₹198 per share, reflecting a 5.9% discount to Thursday's closing price of ₹210.
Banga, who founded The Caravel Group—a global conglomerate involved in resources trading, maritime services, and asset management—was an early investor in Nykaa and held a 6.4% stake in FSN E-Commerce Ventures as of the end of the June quarter, equivalent to approximately 18.28 crore shares. Other prominent pre-IPO investors in Nykaa include Narotam Sekhsaria, Sunil Kant Munjal, Mala Gaonkar, Steadview Capital, and TPG Growth.
The stock has risen as much as 9.2% to its 52-week high of ₹229.90 in intra-day deals today. Post today's rally, it has surged over 74.5% from its 52-week low of ₹131.70 on August 28, 2023.
Shares of Nykaa have rallied nearly 56% over the past year and over 32% year-to-date in 2024. Just in August, the stock rose almost 17%, extending gains for the third straight month. It rose 9.4% in July and 7.5% in June after a 7% fall in May.
For the quarter ending June 30, 2024, Nykaa delivered a robust performance, with a net profit of ₹13.6 crore, marking an impressive 152% increase from ₹5.4 crore in the same period last year. The Falguni Nayar-led company also reported operating revenue of ₹1,746 crore, reflecting a 23% year-on-year growth from ₹1,422 crore in the corresponding quarter of the previous year.
Sequentially, Nykaa’s profit after tax (PAT) grew 50% from the ₹9.07 crore reported in Q4 FY24, while revenue from operations increased 4.6% from ₹1,668 crore in the January-March quarter. The company’s gross merchandising value (GMV) for the April-June quarter stood at ₹3,321 crore, up 25% year-on-year. Additionally, Nykaa's EBITDA grew by 31% year-on-year to ₹96 crore, with an EBITDA margin improvement of 34 basis points to 5.5%.
Nykaa, under FSN E-Commerce Ventures, is a consumer technology platform offering beauty, fitness, healthcare, skincare, and haircare products through both online and offline channels. The company has three main segments: Beauty and Personal Care (BPC), Fashion, and Others, which include Nykaa Man, Superstore, and its international business.
