TPG Capital to sell Nykaa shares worth Rs 1,000 cr via block deal on Friday

American private equity firm TPG Capital is likely to sell shares of Nykaa worth Rs 1,000 crore through a block deal

Citigroup has launched a block deal to sell shares of cosmetics-to-fashion retailer Nykaa worth Rs 1,000 crore ($125 million), reported CNBC Awaaz.

This comes days after the lock-in expiry for pre-IPO investors in the cosmetics-to-fashion company came to an end. The lock-in period for Nykaa shares expired on November 10. During the lock-in period, promoters and investors cannot liquidate the pre-IPO securities held by them.

American private equity firm TPG Capital is the seller in the block deal, and the deal provides a discount of up to 0.5 per cent from the going rate. On November 17, Nykaa's shares on the BSE closed at Rs 184.35 a share, down 0.54 per cent from the previous day's close.

Notably, Citigroup also completed a block sale of 0.6 per cent of its equity worth Rs 306 crore, last week. On November 10, there were 17,600,000 shares traded, with an average price of Rs 172 per share.

Falguni Nayar, Nykaa's founder and CEO said last week during the post-earnings analyst call last week that high net-worth individuals (HNIs), who were among the company's initial investors, tend to be long-term investors. "But we won't be able to speak on their behalf and we are not privy to the decision they make," she said where questioned about whether pre-IPO investors would keep their stakes or sell them.

In the quarter ending September 30 during the financial year 2022-23, Nykaa reported a net profit of Rs 5.19 crore, a significant increase from the Rs 1.17 crore recorded in the same period the previous year.

In the same quarter, Nykaa's consolidated revenue from operations increased to Rs 1,230.8 crore, a 39 per cent increase over the revenue of Rs 885.26 crore reported in the second quarter of the previous fiscal.