Shares of Nykaa (FSN E-Comm Ventures) fell over 2% in trade after the company’s five top level executives tendered their resignation on Friday. Nykaa share price hit a day’s low of Rs 133 on the NSE in the morning trade, and was trading at Rs 134.35 at 10:15 AM.
The resignations included of Manoj Gandhi – Chief Commercial Operations Officer, Gopal Asthana – Chief Business Officer -Fashion, Vikas Gupta, CEO – Wholesale Business and other two vice presidents of the fashion division. The company spokesperson said that they see some of the mid-level exits as a part of the standard annual appraisal & transition process.
“Voluntary and involuntary exits are expected in a fast-paced, growth-focused, consumer tech organisation with over 3,000 on-roll employees,” the spokesperson added.
The exodus comes in amid a sharp downfall for the company’s stock price in the recent past on concerns over rising competition. Adding to the pressure, brokerage firm Macquarie had initiated a call on the stock, with a target price of Rs 115, down 33 Rs from CMP.
On the other hand, Jefferies has initiated a Buy call on the stock with a target price of Rs 200. The brokerage says that the company will be able to replace this (the recent exist) with a mix of in-house and external talent.
