Nykaa Shares Drop 5% After Banga Family Likely Pares Stake Via Block Deals

Shares of Nykaa parent, FSN E-Commerce dropped as much as 5% on July 3 after a block deal hit the counter, with early investors, the Banga family being the likely seller.

As many as six crore shares of the beauty and personal care brand, making up a 2.3% stake in the company, changed hands through block deals, CNBC-TV18 reported.

The block deals also tipped off a sharp spike in trading volumes in the counter. As many as 12 crore shares of FSN E-Commerce changed hands on the exchanges thus far, already much higher than the one-month daily traded average of 69 lakh shares.

The parties involved in the transaction could not be immediately ascertained. However, reports from CNBC-TV18 suggested that early investors, Harindarpal Singh Banga and Indra Banga were looking to offload 2.1% equity of Nykaa via block deals. The report suggested that the Banga family was eyeing to make Rs 1,200 crore off the stake sale.

The deal was expected to be executed on July 3, with settlement scheduled for July 4. The stake sale would also trigger a 45-day lock-in period for the sellers before they can further pare equity in the company.

The Banga family currently holds close to 5% in Nykaa, according to the latest shareholding disclosures, and has been one of the company’s earliest backers. Their initial investment dates back to 2014, when Nykaa was valued at around $20 million. Since then, the company’s valuation has grown significantly to nearly $700 million, translating into massive returns for the family.

At one point, the Banga family held a 6.4% stake, as per private markets data platform Tracxn. They have gradually pared down their holding over time. In 2024, they sold shares worth ₹809 crore at ₹198 apiece. The family manages The Caravel Group, a global conglomerate with interests in resources trading, maritime services, and asset management.