Nykaa Slips Over 3% In Two Days After Kravis Investment Sells Shares Worth INR 629 Cr

Nykaa Shares Hit Record Low Of INR 114.3 In Intraday Trading On Wednesday

SUMMARY

Kravis Investment Partners, a pre-IPO investor, sold a total of 3.7 Cr shares at INR 171 apiece on Thursday via multiple block deals

ICICI Prudential bought 87.7 Lakh shares of Nykaa on Thursday, while Goldman Sachs Investments Mauritius and Goldman Sachs (Singapore) Pte together bought 1.3 Cr shares

The expiration of the lock-in period for per-IPO investors of Nykaa saw investors like Lighthouse India Fund III, TPG Capital, and Mala Gopal Gaonkar selling stakes

Shares of Nykaa continued their losing streak for the second straight session on Friday (December 16) after one of its pre-IPO shareholders, Kravis Investment Partners, sold INR 629 Cr worth of shares in the beauty ecommerce startup via multiple block deals.

Following Kravis Investment’s stake sale on Thursday, shares of Nykaa closed yesterday’s session over 1% lower. On Friday, the shares were trading over 2% lower at INR 166.90 at 2 PM.

Kravis Investment, which held a total of 53.8 Lakh shares or a 1.13% stake in Nykaa till September this year, prior to the startup’s bonus share issue, sold a total of 3.7 Cr shares at INR 171 apiece. The venture capital firm is expected to have exited Nykaa.

The latest share sale by another pre-IPO investor comes a month after several of its investors, including private equity firm Lighthouse India Fund III, TPG Capital, and Mala Gopal Gaonkar, offloaded large amounts of stakes in Nykaa after its lock-in expired on November 10.

Prior to Kravis Investment, Lighthouse was the last to sell Nykaa shares worth INR 335.7 Cr via block deals.

Meanwhile, ICICI Prudential bought 87.7 Lakh shares of Nykaa, worth almost INR 150 Cr. Goldman Sachs Investments Mauritius and Goldman Sachs (Singapore) Pte together bought a total of 1.3 Cr shares worth INR 220.9 Cr. Canada Pension Plan Investment Board also bought Nykaa shares worth INR 158.2 Cr on Thursday.

Goldman Sachs, Canada Pension Plan Investment Board, and ICICI Prudential are among the big names which have increased their stake in Nykaa over the last month despite the fall in its share price.

Shares of Nykaa have fallen over 50% year to date amid questions being raised around the rationale behind the valuation on which Indian tech startups went public in 2021. However, it must also be noted that tech companies across the world have been hit due to global macroeconomic issues and uncertainties.

Amid these challenges, analysts have largely remained positive about Nykaa’s long-term growth prospects.