New Delhi: Trading 59% below its 52-week high, shares of FSN E-Commerce Ventures, which runs beauty and fashion platform Nykaa, tanked over 4% on Tuesday, falling for the second straight day. Lighthouse India was looking to sell Nykaa shares worth Rs 335 crore via a block deal at a price band of Rs 180-183.50 per share.
The new-age stock slumped to the day’s low at Rs 175 per share during the day amid a spurt in volume by more than 1.26 times. In the early morning hours, over 37 million shares of Nykaa changed hands.
After the lock-in expiry earlier in the month, a number of pre-IPO investors have been liquidating the securities held by them. NRI investor Mala Gopal Gaonkar last week sold 5.75 crore shares of Nykaa at an average price of Rs 175.48 in a deal worth Rs 1,009 crore.
Lighthouse India Fund-III had earlier sold shares in Nykaa worth Rs 525 crore. Other sellers in the past have included Segantii India Mauritius and American private equity firm TPG.
However, brokerages have remained bullish on Nykaa with 11 out of 16 analysts covering the stock recommending it a buy. The average price target signals an upside potential of about 47%, shows Trendlyne data.
Source: https://economictimes.indiatimes.com/markets/stocks/news/nykaa-shares-fall-over-4-for-the-second-day-heres-why/articleshow/95676512.cms