Citigroup has launched a deal to sell shares in cosmetics-to-fashion retailer Nykaa, worth Rs 250 crore, via a block deal, CNBC Awaaz reported on November 9.
The block deal involves "individual employee seller", the news channel said, adding that the deal offers a discount of up to two percent on the current market price.
The report comes amid the stock of FSN E-Commerce Ventures Ltd, the parent entity of Nykaa, taking a drubbing at the stock market.
The shares on November 9 settled at Rs 1,060.30 apiece at the NSE, which was 6.34 percent lower as against the previous day's close. At the BSE, the share closed at Rs 1,076 apiece, down nearly 5 percent as against the last closing price.
Notably, the lock-in period for Nykaa shares will expire on November 10. During the lock-in period, promoters and investors could not liquidate the pre-IPO securities held by them.
The company’s founder and chief executive officer Falguni Nayar, during the post-earnings analyst call last week, said high net worth individuals (HNIs), who were among the early set of investors in Nykaa, tend to be long-term investors. “But, we won’t be able to speak on their behalf and we are not privy to the decision they make,” she added, when asked whether pre-IPO investors would hold their stakes or sell.
During the quarter ended September 30, 2022, Nykaa posted a net profit of Rs 5.19 crore, which marks a multifold increase as compared to Rs 1.17 crore clocked in the year-ago period.
Nykaa's consolidated revenue from operations during the second quarter jumped to Rs 1,230.8 crore, which was 39 percent higher as against the revenue of Rs 885.26 crore reported in the same quarter of the last fiscal.
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