Nykaa Shares Plunge Over 9%; Segantii India Mauritius Sells Over 33 Lakh Shares

Shares of beauty and fashion ecommerce platform Nykaa plunged 9.2% to INR 192 on the BSE on Tuesday (November 15), days after the expiry of the lock-in period for its pre-IPO investors. 

Segantii India Mauritius, which purchased almost 38 Lakh shares of Nykaa last week, sold a majority of the shares, over 33.7 Lakh, on Tuesday in a bulk deal. Segantii India Mauritius had purchased the shares at INR 171.75 apiece and sold them for INR 199.24 apiece. 

After Nykaa’s lock-in expiry last week, several of its pre-IPO shareholders, including Mala Gopal Gaonkar, Lighthouse India, and TPG Growth, had also sold large volumes of shares, with Narotam S Sekhsaria fully exiting the company.

However, despite the sell-off pressure, Nykaa’s share price jumped last week as several new investors bought shares in bulk deals. Besides Segantii India Mauritius, Societe Generale, Morgan Stanley, Norges Bank, and Aberdeen Standard Asia Focus together purchased over 23 Mn shares of the startup. 

It is pertinent to note that Nykaa’s 5:1 bonus share issue also cushioned the company from large sell-off pressure post the lock-in expiry. The bonus shares for its shareholders were likely to be credited to their demat accounts by today.

While Segantii India Mauritius sold its stake in Nykaa, Hermes Investment Funds bought 28.8 Lakh shares in a bulk deal on Tuesday for 198.48 apiece.

Shares of Nykaa, which rose 12.7% last week, fell as much as 9.6% to INR 191.15 on the BSE during the intraday trading.

Earlier this month, Nykaa reported a 300% jump in its year-on-year (YoY) net profit at INR 5.2 Cr for the quarter ended September 2022. However, net profit was almost flat compared to Q1 FY23. While the beauty and personal care segment registered an impressive growth, the fashion segment’s growth was muted during the quarter.