Shares of FSN E-Commerce Ventures Ltd, the parent company of Nykaa, jumped nearly 4% during Friday’s trading session. 4.09 crore shares (1.43% equity) changed hands in the block deal window.
Earlier, reports suggest that early investor Harindarpal Singh Banga, along with his associates, planned to offload a 1.4% stake worth ₹809 crore through a block deal.
As per a term sheet issued by JP Morgan and Goldman Sachs, the bankers for the sale, Harindarpal Singh and his wife Indra Banga are expected to sell 4.09 crore shares at a floor price of ₹198 each. This price represents a 5.9% discount to Thursday’s closing price of ₹210.
Harindarpal Singh, an early backer of FSN E-Commerce Ventures, which owns the fashion and beauty platform Nykaa, founded The Caravel Group, a global conglomerate engaged in resources trading, maritime services, and asset management.
By the end of the June 2024 quarter, Harindarpal Singh held a 6.4% stake in Nykaa’s parent company. The planned sale will reduce their holding to around 5%. Following the block deal, a 45-day lock-up period will be in place to prevent further sales of these shares.
Nykaa shares have seen significant growth, rising nearly 56% over the past year. In the last six months, the stock is up by nearly 40%, including an 18% increase in the last month and a 12% rise over the last five trading sessions.
As of 9:15 am the shares were trading 3.43% higher at ₹217.64 on NSE.
