TPG rumoured to have sold some of its stake in Nykaa yet again

• ByStartupStory     |    November 19, 2022

The Nykaa-branded FSN E-Commerce Ventures is owned by the American investment firm TPG Capital, which presumably sold 1,000 crore worth of its shares via a block deal on Friday. Prior to Friday’s beginning session, 5.42 crore equity shares of Nykaa were traded at an average price of Rs 184.55 per, according to the NSE morning block transaction window. The agreement offers a discount of up to 0.6% from the share price’s closing price on Thursday of Rs 185.60.

Following the conclusion of its lock-in expiry for pre-IPO investors on November 10th, this is TPG’s second such sizable trade in Nykaa. On November 11, the American PE investor sold 1.08 crore equity shares for Rs 186.40 each, resulting in a transaction worth Rs 202.1 crore. The pre-IPO securities that the promoters and investors have on hand cannot be sold off during the lock-in period. In Nykaa, there have been a number of bulk deals since the lock-expiration. in’s

Since lock-up expired last week, Nykaa shares have been under pressure. At the day’s low, the company’s shares dropped 4% to $171, bringing the four-day losses to over 20%. NSE data shows that on November 10th, Lighthouse India sold 96,89,240 shares at an average price of $171. Segantii India Mauritius sold 33,73,243 shares at an average price of 199 on November 15th, among other significant sellers.

After lock-ups expire, stocks frequently decline as a result of investor selling that puts pressure on share prices. Zomato, a food delivery service, had seen a record low in July when a lock-up on its shares expired. The price of Nykaa’s shares has dropped below their IPO price since the company’s roaring market debut in November 2021. Strong demand leading up to the holiday season helped Nykaa report net profit of about 5 crore for the three months ending in July. To $1,231 crore, revenue increased 39%.

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