
Block deal today: Harindarpal Singh Banga, jointly with Indra Banga, are looking to offload 2.1 per cent stake in FSN E-Commerce, the parent company of Nykaa, through bulk sale - by way of one or more share sales on the screen-based trading platform of stock exchanges, sources told Business Today.
The proposed transaction involves the sale of up to 6 crore shares at a floor price of Rs 200 per share, which is at 5.5 per cent discount to Nykaa's Wednesday's closing price of Rs 211.59 on Thursday. Goldman Sachs (India) Secuities and JP Morgan India Private Limited are the placement agents of the 100 per cent secondary offer. At the floor price, the offer size stands at Rs 1,200 crore or $140.3 million. The lock up period for the selling party and its affiliates is set at 45 days. During this period, it would be restricted from offloading any additional shares.
Sources said there is no assurance that any order for shares will be met in part or full, principally due to the operational mechanics and the screen-based mechanism of the stock exchanges. Any allocation to foreign portfolio investors is subject to headroom available for acquisition of equity shares of the company by such investors, as per the investment limits prescribed under applicable laws.
Harindarpal Singh Banga held 14,20,00,000 shares or 4.97 per cent stake in Nykaa as of March 31.
Nykaa recently held an Analyst Day, outlining its strategic plans across various segments. In the beauty and personal care (BPC) category, the company is targeting approximately 25 per cent GMV CAGR over FY25–30, driven by increased market penetration and premiumisation. Its two-hour delivery service, Nykaa Now, aimed at countering quick commerce, is currently live across over 40 stores in seven cities. The scale-up of this initiative and its impact on profitability will be closely monitored.
In the fashion segment, Nykaa aims to grow GMV by 3–4 times by FY30, with an EBITDA breakeven target by FY26 and a goal of reaching mid-to-high single-digit Ebitda margins by FY28. The House of Nykaa beauty portfolio is expected to scale to Rs 6,000 crore in GMV by FY30, implying a GMV CAGR of around 30 per cent.
ICICI Securities has ADD rating on the stock with a target price of Rs 230.
"Our DCF-based target of Rs 216 at Jun-26F factors in a 16 per cent revenue CAGR over FY25-40F, with long-term Ebitda margin stabilizing at 14%. The stock currently trades at 5 times FY26F EV/sales, which we believe is in the fair value zone," Nomura India said.