TPG Capital has likely offloaded shares worth $123 million (Rs. 1,000 crore) in Nykaa, days after the lock-in expiry for pre-IPO investors in the online fashion and cosmetics retailer ended.
According to media reports, TPG Capital is likely to sell the shares at Rs 184.55, a 0.6% discount to Thursday’s closing price of Rs 185.60. As on September 30, the private equity firm held a 2.28% stake in the company.
Previously, foreign fund Lighthouse India Fund III sold 3 crore shares of Nykaa at an average traded price of Rs 175.13, while Segantiii India Mauritius sold shares worth Rs 67 crore in the company. Nykaa’s shares have fallen over 12% in the last three sessions but were up 3.3% in afternoon trade on Friday.
The lock-in period for Nykaa expired on November 9, but the stock did not face any selling pressure. Many suggest this could be because of founder Falguni Nayar’s move to announce the bonus issue.
Last month, Nykaa announced a 5:1 bonus share issue and its stock price started trading in a lower denomination. Nykaa had earlier fixed the record date for the bonus issue on November 3 but later postponed it by a week to November 11.
Valuations of several new-age companies have taken a beating in the private market as the craze for startups wanes, possibly delaying their plans to go public. Given the low risk appetite in the Indian equity markets at present and the highly uncertain economic scenario in the medium and long term, investors are reluctant to invest in startups.
Still, Nykaa is also the only profitable company among the four new-age stocks, including Paytm, Zomato, and PB Fintech, that debuted around the same time.
Two weeks ago, Nykaa reported a 350% jump in quarterly profit buoyed by strong demand for its products ahead of the festive season in India.
Nykaa shares started trading at a premium of over 82% at Rs 2,054 per share on debut. They are currently trading at Rs 192.9 per share, having lost over 45% in one year.