A significant deal has been observed in FSN E-Commerce Ventures Limited, the parent company of Nykaa. According to reports, the Banga family has sold its 2.1% stake in the company. This deal was completed for approximately ₹1,213 crore.
Shares of Nykaa saw a sharp decline in the stock market on Thursday. In early trading, the stock fell by about 5%. The reason behind this drop was the sale of a 2.1% stake by the Banga family, one of the initial investors in the company. The price of this deal was approximately ₹1,213 crore.
Who is the Banga family?
Harinderpal Singh Banga and his wife, Indra Banga, are associated with the Caravel Group, based in Hong Kong. Both were among the initial investors in Nykaa. They invested in the company when Nykaa's IPO was launched in 2021.
Until March 2025, the Banga family held approximately 4.97% of the company's shares. But they have now sold 2.1% of it. After this sale, their stake has decreased to 2.87%.
On what terms was the sale deal done?
This deal was completed through Goldman Sachs (India) and JP Morgan India Brokers. A total of 6 crore shares were sold at ₹202.25 per share. This deal was done at a discount of about 4.4% to the company's closing price of ₹211.80 on the BSE.
Earlier, in August 2023, the Banga family had sold a 1.43% stake and raised approximately ₹851 crore.
Why did the share come under selling pressure?
According to the old market mindset, when a major investor, especially an initial investor, sells their stake, it increases uncertainty in the market. This is seen as an indication that the major investor no longer has confidence in the company's growth, or that they are exiting after booking profits. This is why the share price fell sharply as soon as the deal was announced.
On Thursday, Nykaa's share fell to ₹201. During the day, it made a high of ₹205.10 and a low of ₹201. Whereas a day earlier, on Wednesday, it closed at ₹211.80.
How has the share performed so far?
Since the beginning of 2025, Nykaa's share has seen a rise of about 24%. If we talk about the last 52 weeks, its highest level has been ₹229.90 and the lowest level has been ₹154.90. Currently, the company's market cap is around ₹58,151 crore.
Nykaa's New Plan – 'Nykaa Now'
The company is now preparing to enter the rapidly growing quick commerce market. Under this, a new service called 'Nykaa Now' is being launched. Through this, beauty products will be delivered within 30 to 120 minutes in seven major cities.
To make this service successful, the company is building a b network of beauty warehouses, retail outlets, and rapid stores.
Profit expected from fashion unit
Nykaa's fashion unit is still in loss, but the company expects this unit to reach the break-even level by FY26. Currently, the EBITDA margin of this unit was -8.3% in FY25. However, this unit generated a GMV of approximately ₹3,800 crore.
How were the March quarter results?
In the March 2025 quarter, the company's consolidated net profit increased from ₹6.93 crore to ₹20.28 crore. That is, good growth was seen on an annual basis. During the same period, the company's operating revenue also increased by 23.6% to ₹2061.76 crore, which was ₹1667.98 crore last year.
However, on a quarter-on-quarter (QoQ) basis, a decline of 22.3% in net profit and 9% in revenue was recorded.
Performance of the entire financial year 2025
In FY25, the company has recorded a net profit that has almost doubled. While the profit was ₹32.26 crore in FY24, it increased to ₹66.08 crore in FY25. The company's operating income also increased by 24.4% to ₹7949.82 crore. At the same time, the customer base has also increased by 28% to more than 4.2 crore.
