Citigroup has launched a block deal to sell shares in cosmetics-to-fashion retailer Nykaa, worth $125 million or Rs 1,000 crore, CNBC Awaaz reported on November 17.
The report comes days after the lock-in expiry for pre-IPO investors in cosmetics-to-fashion retailer ended.
The block deal involves TPG Capital as the seller, the news channel reported, adding that the deal offers a discount of up to 0.5 percent on the current market price.
Shares of Nykaa on November 17 settled at Rs 184.35 apiece on the BSE, which was 0.54 percent lower than the previous day's close.
The lock-in period for Nykaa shares expired on November 10. During the lock-in period, promoters and investors cannot liquidate the pre-IPO securities held by them.
Notably, Citigroup had last week too completed a block deal to sell 0.6 percent equity or shares worth Rs 306 crore. In terms of shares, 176 lakh shares at an average of Rs 172 per share changed hands in the trade on November 10.
The company’s founder and chief executive officer Falguni Nayar, during the post-earnings analyst call last week, had 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 than the revenue of Rs 885.26 crore reported in the same quarter of the last fiscal.
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