Nykaa Shares Soar As Early Investors Offload Rs 858 Crore Stake
About 4.08 crore shares of FSN E-Commerce Ventures Ltd. changed hands in the pre-market session at an average price of Rs 208 per share, as per Bloomberg data.
Shares of Nykaa parent firm FSN E-Commerce Ventures Ltd. gained over 4% on Friday following a large trade. Early investors reportedly sold a 1.4% stake for over Rs 858 crore.
About 4.08 crore shares, or 1.4% of the equity stake, changed hands in the pre-market session at an average price of Rs 208 per share, according to Bloomberg data.
Harindarpal Singh Banga and Indra Banga, investors in Nykaa parent firm, proposed to sell up to 4.09 crore shares through a block deal, according to terms obtained by Bloomberg News.
The floor price of the offer is Rs 198 per share, which represents a discount of 6.27% to Nykaa's closing price of Rs 210.42 per share on the NSE on Thursday.
Harindarpal Banga held a 6.4% stake in the beauty and personal care platform as of June 2024. Goldman Sachs and JPMorgan will be managing the transaction.
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Shares of Nykaa rose as much as 4.55% during the day to Rs 220 apiece on the NSE. It was trading 4.19% higher at Rs 219.8 apiece, compared to a 0.08% advance in the benchmark Nifty 50 as of 9:53a.m.
It has risen 60% in the last 12 months and 25% on a year-to-date basis. The total traded volume so far in the day stood at 40 times its 30-day average. The relative strength index was at 72.
Fourteen out of the 23 analysts tracking the company have a 'buy' rating on the stock, five recommend a 'hold' and four suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 6.4%.
