Nykaa block deal has taken center stage in financial headlines today as Harindarpal Singh Banga and Indra Banga are preparing to offload a 2.1% stake in FSN E-Commerce Ventures, the parent company of Nykaa, through a large-scale block deal. The proposed Nykaa block deal comprises a sale of up to 6 crore shares at a discounted floor price of ₹200 per share representing a 5.5% markdown from Wednesday’s closing price of ₹211.59.
At this floor price, the Nykaa block deal is estimated to be worth ₹1,200 crore, or approximately $140.3 million. Placement agents Goldman Sachs (India) Securities and JP Morgan India Pvt Ltd are overseeing this 100% secondary share sale. Notably, a 45-day lock-up period has been established, during which the selling party and affiliates are restricted from selling additional shares.
Key Details of the Nykaa Block Deal
The Nykaa block deal is a strategic bulk sale executed via the screen-based trading mechanism on the stock exchanges. Sources familiar with the matter revealed that while the transaction is structured for completion today, there’s no guarantee that all share orders will be fulfilled due to operational mechanisms and limits tied to screen-based systems.
In terms of foreign portfolio investor (FPI) participation, allocation is subject to the regulatory ceiling under applicable investment rules. As of March 31, 2025, Harindarpal Singh Banga held 14.2 crore shares, or a 4.97% stake, in Nykaa.
The floor price of ₹200 per share offers a significant opportunity for institutional investors, considering Nykaa’s recent growth trajectory and strategic outlook. The Nykaa block deal is likely to impact short-term market dynamics but is also expected to bring in increased institutional activity due to the attractive pricing.
Nykaa’s Growth Vision Shared During Analyst Day
Just days before the Nykaa block deal announcement, the company held its Analyst Day event, highlighting robust strategic growth plans across its business verticals. In the beauty and personal care (BPC) category, Nykaa aims for a gross merchandise value (GMV) CAGR of around 25% over FY25–30. This would be achieved through increased market penetration and premium product offerings.
Nykaa’s two-hour delivery service, Nykaa Now, is currently live in over 40 stores across seven major cities. This initiative, designed to counter quick-commerce rivals, is expected to scale rapidly. The impact of this service on overall profitability is being closely watched by investors and analysts alike.
Fashion and House of Nykaa: Ambitious Long-Term Targets
In the fashion segment, Nykaa is targeting a three to fourfold GMV growth by FY30. The company has also set an EBITDA breakeven target for FY26, aiming for mid-to-high single-digit EBITDA margins by FY28.
Meanwhile, the in-house beauty portfolio, House of Nykaa, is projected to reach ₹6,000 crore in GMV by FY30—implying a GMV CAGR of nearly 30%. The Nykaa block deal comes at a time when investor confidence in the company’s long-term prospects is strengthening, supported by aggressive expansion and innovation strategies.
also read :- Nykaa Stock Rally: 5-Year Growth Plan, Broker View
What Analysts Are Saying About Nykaa
Post-Nykaa block deal announcement, analysts have issued varied opinions. ICICI Securities has maintained an “ADD” rating on Nykaa with a revised target price of ₹230.
Nomura India, on the other hand, stated: “Our DCF-based target of ₹216 by June FY26 factors in a 16% revenue CAGR over FY25–40, with EBITDA margin stabilizing at 14%.” The brokerage added that Nykaa stock is trading at 5x FY26 estimated EV/sales, which it considers to be a fair valuation level.
These estimates indicate long-term optimism surrounding Nykaa’s business model despite the short-term pressure from the Nykaa block deal.
The Nykaa block deal by Harindarpal Singh Banga marks a significant moment in the Indian equity market, with ₹1,200 crore worth of shares entering the trading floor. While the discounted floor price might cause a brief dip in Nykaa’s share price, long-term investor sentiment appears resilient thanks to the company’s aggressive expansion plans, digital-first strategies, and promising analyst outlooks.
With foreign portfolio investor interest, attractive valuations, and strategic business updates, the Nykaa block deal is not just a share sale—it’s a barometer of institutional confidence in one of India’s most dynamic e-commerce brands.
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