Nykaa shares tumble 4.5% after ₹1,200cr block deal
What's the story
The shares of FSN E-Commerce Ventures, the parent company of Nykaa, fell by as much as 4.5% on Thursday to ₹202.25 apiece on the BSE. This comes after a block deal saw some six crore shares—about 2.3% equity—change hands, ET Now reported. The decline was prompted by early investors Harindarpal Singh Banga and Indra Banga's decision to sell their stake in the company through a block deal worth up to ₹1,200 crore.
Deal specifics
Term sheets indicated nearly 60 million shares would be sold
Ahead of the block deal, term sheets indicated that up to 60 million shares would be sold at a floor price of ₹200 per share. This was about a 5.5% discount to the stock's closing price of ₹211.59 on July 2. The entire transaction is a secondary sale with no fresh equity being issued, managed by global investment banks Goldman Sachs (India) Securities and JP Morgan India.
Trade execution
Block deal expected to be executed today
The block deal is expected to be executed on July 3 with settlement scheduled for July 4. A 45-day lock-up period has been imposed on the sellers and their affiliates, restricting further share sales during this window. While no official pricing guidance has been issued, investors are expected to indicate their bids based on demand across the price range. Final pricing will be discovered via a screen-based mechanism when the trade crosses the exchange.