Nykaa shares tumble over 4% after 6 crore shares change hands in large block deal

Shares of FSN E-Commerce Ventures, the parent company of beauty and fashion platform Nykaa, slipped as much as 4.5% on Thursday to Rs 202.25 on the BSE after about 6 crore shares—roughly 2.3% equity — changed hands in a block deal, according to ET Now.

The sell-off was anticipated following reports that early investors Harindarpal Singh Banga and Indra Banga were planning to pare their stake in the company through a block deal worth up to Rs 1,200 crore.

Ahead of the deal, term sheets indicated that up to 60 million shares — representing 2.1% of Nykaa’s total equity — would be sold at a floor price of Rs 200 per share. This marked a discount of about 5.5% to the stock’s closing price of Rs 211.59 on July 2.


The entire transaction is a secondary sale, with no fresh equity being issued. Global investment banks Goldman Sachs (India) Securities and JP Morgan India are managing the deal. Proceeds from the sale will go directly to the selling shareholders.

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The trade is expected to be executed on July 3, with settlement scheduled for July 4. A 45-day lock-up period has been imposed on the sellers and their affiliates, restricting further share sales during this window.

While no official pricing guidance has been issued, investors are expected to indicate their bids based on demand across the price range. Final pricing will be discovered via the screen-based mechanism when the trade crosses the exchange.

The books are slated to close by 7:30 am on July 3. Foreign portfolio investors (FPIs) may participate, but allocations will depend on available regulatory headroom under Indian laws.

The sale comes with standard selling restrictions, with participation barred for retail clients and distribution restricted in the US and Canada to specific institutional investors under applicable securities laws. Eligible buyers must also sign and return an investor representation letter to the placement agents.

The move underscores strategic stake monetisation by Nykaa’s key shareholders at a time when the company’s stock has shown a mild recovery and institutional interest remains high in India’s consumer-tech space.

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