Nykaa shares decline 5% for second straight day on heavy volumes

Since Nov 10, when the stock price of Nykaa turned ex-bonus and the lock-in period ended, investors as well as private equity firms have offloaded around 181 million equity shares

Shares of Nykaa, owned by FSN E-Commerce Ventures, were trading lower for the second straight day, down 5 per cent at Rs 174.50 on the BSE in Tuesday's intra-day trade, amid heavy volumes. The stock of the beauty e-retailer has fallen 9 per cent in the past two trading days. In comparison, the S&P BSE Sensex was up 0.30 per cent at 61,326 at 12:10 PM.

A combined 44.56 million equity shares of Nykaa had changed hands on the NSE and BSE till the time of writing of this report, the exchange data shows. The names of the buyers and sellers could not be ascertained immediately.

However, as per reports, private equity firm Lighthouse India was looking to sell stake worth Rs 320 crore in FSN E-Commerce Ventures through a block deal today. The shares were expected to be offered at a price of around Rs 180-183.5 apiece. A total of around 18 million shares, or 0.65 per cent, of Nykaa's overall stake were to be offloaded by Lighthouse through the block trade.

Meanwhile, in the past three months, Nykaa has underperformed the market by falling nearly 25 per cent, as compared to 4 per cent rise in the S&P BSE Sensex. Further, in the past one year, it has tanked 50 per cent as against 5 per cent gain in the benchmark index. It has corrected 59 per cent from its record high level of Rs 429 (adjusted to 5:1 bonus share), touched on November 26, 2021.The stock had hit a record low of Rs 162.59 on October 28, 2022.

Since November 10, when the stock price of Nykaa turned ex-bonus, investors as well as private equity firms have offloaded around 181 million equity shares worth of Rs 3,228 crore of the company via multiple block deals, exchanges data shows.

Meanwhile, the lock-in period for Nykaa shares had expired on November 10. During the lock-in period, promoters and investors cannot liquidate the pre-IPO securities held by them.

The list of sellers includes Mala Gopal Gaonkar, Narotam S Sekhsaria, TPG Capital and Lighthouse India Fund. The names of buyers include Canada Pension Plan Investment Board, Hermes Investment Funds Public Limited, Morgan Stanley Asia (Singapore) Pte and Societe Generale, data shows. CLICK HERE FOR BLOCK DEALS DATA