[Update] Nykaa’s Pre-IPO Investor Harindarpal Singh Banga Offloads Over 4 Cr Shares Worth INR 851 Cr

Update | August 23, 8.01 PM

Beauty and fashion ecommerce major Nykaa’s early investor Harindarpal Singh Banga offloaded around 4.1 Cr shares worth INR 851.5 Cr in a bulk deal on Friday (August 23).

Following the deal, Banga holds about 14.2 Cr shares in the company.

The offloaded shares were lapped up by multiple institutional investors. Copthall Mauritius Investment Limited picked up 10 Lakh Nykaa shares, while India Acorn ICAV bought 24.9 Lakh shares.

On the other hand, Goldman Sachs (Singapore) Pte bought 37.5 Lakh shares of the company and SBI Mutual Fund lapped up 27.5 Lakh shares. Among the other buying funds were Kotak Mahindra Mutual Fund, HSBC Mutual Fund, HDFC Standard Life Insurance, and Morgan Stanley Asia Singapore Pte.

Shares of Nykaa ended today’s trading session 7.8% higher at INR 226.9 on the BSE.

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Original Story | August 22, 7:11 PM

Amid Nykaa’s bull run on the bourses, its early investor Harindarpal Singh Banga is reportedly looking to sell 1.4% stake in the beauty and personal care ecommerce major. 

As per a report by CNBC-TV18, Banga is looking to offload the shares at a floor price of INR 198 apiece, a discount of 5.9% to the closing price of INR 210.40 on Thursday (August 22). The sold shares will have a lock-in period of 45 days. 

Banga, who is the founder and the CEO of The Caravel Group, held 18.28 Cr shares, or a 6.4% stake, of Nykaa at the end of the June quarter. 

This will be the second major share offloading for the startup in the ongoing quarter (Q2 FY25). Earlier in July, Canada Pension Plan Investment Board (CPPIB) offloaded 1.47 Cr shares of Nykaa for INR 256.4 Cr via a block deal. The CPPIB sold the stake at INR 174.04 per share.

The development comes at a time when the shares of Nykaa are on an upward trajectory. Earlier this week, the shares of the Falguni Nayyar-led startup touched a fresh 52-week high of INR 228.5 on the BSE during the intraday trading on August 21. 

Overall, the stock has gained nearly 29% year-to-date. 

Earlier this month, Nykaa reported a robust Q1 performance. Its consolidated net profit surged 152% to INR 13.6 Cr during the quarter from INR 5.4 Cr in Q1 FY24. Operating revenue also jumped 22.8% to INR 1,746.1 Cr during the reported quarter from INR 1,421.8 Cr in Q1 FY24.

Meanwhile, the startup also said that it would increase its stake in Dot & Key and Earth Rhythm. While it would acquire an additional 39% stake in its subsidiary Dot & Key for INR 265.3 Cr, it would buy an additional stake in the beauty brand Earth Rhythm for INR 44.5 Cr.

Following the disclosures, brokerage Nuvama maintained its ‘buy’ recommendation on the stock and increased its price target to INR 220 from INR 203 earlier.