Banga's Big Bet: Nykaa Stake Sale Shakes Market

Harindarpal Singh Banga and his wife divested a 2.1% stake in Nykaa, resulting in a deal worth Rs 1,213 crore. Following this, Nykaa's shares declined on the BSE and NSE. Banga's holding has reduced from 4.97% to 2.87%. Despite challenges, Nykaa continues expanding into quick-commerce with 'Nykaa Now'.

Harindarpal Singh Banga, a Hong Kong-based commodities billionaire, and his wife Indra Banga have sold a 2.1% stake in FSN E-Commerce Ventures, the parent company of Nykaa, for Rs 1,213 crore through bulk deals. This significant divestment has led Nykaa's shares to drop by 4% on the BSE.

The deal involved selling approximately 6 crore equity shares at Rs 202.25 per share, marking a 4.4% discount to the previous closing price. The sale was managed by Goldman Sachs and J P Morgan India, and it follows a previous divestment by Harindarpal last August.

Despite this sale reducing Banga's stake to 2.87%, Nykaa remains in expansion mode. Initiatives include its quick-commerce service, 'Nykaa Now', aiming to improve delivery times in major cities. Moreover, the company has shown significant growth in customer base and revenue, despite recent profitability challenges.