Nykaa shares tumble nearly 4% on likely stake sale by Lighthouse India

Market


MUMBAI: Shares of FSN E-Commerce Ventures, parent of beauty-to-fashion e-tailer Nykaa, fell 3.6% on Tuesday, after private equity firm Lighthouse India likely sold 1.8 crore shares of the company in a block deal.

Lighthouse India held 2.04% stake, or a little over 5.81 crore shares, in Nykaa as of 12 November. It was reported that the PE firm will sell 0.65% of its stake worth 320 crore in Nykaa. Bank of America was the broker for the deal.

As of 1252pm, shares of Nykaa traded at 177.30 apiece, on the BSE, down 3.4% from previous close. The stock had earlier touched a low of 174.50.

A huge number of shares had changed hands as of writing, indicating the possibility of a block deal . On BSE, as of 12pm, 1.9 crore shares had changed hands of a total traded quantity of 2.02 crore shares, implying 94% delivery to traded quantity.

Nykaa’s pre-IPO lock-in period expired on 10 November. During the lock-in period, promoters and investors cannot liquidate pre-IPO securities which they hold. As many as 67% of Nykaa’s shareholding will be released from lock-in.

American investment company TPG Capital sold shares of Nykaa for more than 1,000 crore. As many as 5.42 crore shares of the company were offloaded at a price of 184.55 apiece through a block deal.

“New age company shares have tumbled with the cost of funds rising and most of them, save Nykaa most recently, making losses as they fight to retain investors,” said Hormuz Maloo, director , AFco Investments. “Also, post the anchor lock-ins ending, many pre-IPO investors are selling , causing prices to slump more.”

On 15 November, Segantii India Mauritius also offloaded 33.7 lakh shares of the firm, having bought 37.92 lakh Nykaa shares through a bulk deal on 11 November.

Segantii had sold the shares at 199.24 apiece for a total of 67.20 crore, while its purchase price was 171.75.

Last month, Nykaa announced that its board had approved the issuance of bonus equity shares of the company in the ratio of 1:5 i.e., the company will issue bonus of 5 shares for every 1 share held as on the record date. The board of directors of the firm later revised the record date for its bonus issue to 11 November, 2022 from 3 November that was fixed earlier.

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