Mumbai: Harindarpal Singh Banga, along with Indra Banga, will sell a 2.1% stake worth $140.3 million (approximately ₹1,200 crore) in beauty and personal care company Nykaa through a block deal, according to a term sheet accessed by Mint.
The Bangas, among Nykaa’s earliest investors, are offloading about 60 million shares at an offer price of ₹200 per share, a 5.5% discount to the latest closing price, the term sheet showed.
FSN E-Commerce Ventures Ltd, which operates Nykaa, closed 2.1% lower at ₹211.59 on Wednesday on the National Stock Exchange. The stock has gained 28.7% so far this year.
Goldman Sachs and JP Morgan are managing the transaction. Banga, Nykaa, JP Morgan, and Goldman Sachs did not immediately respond to Mint’s requests for comment.
Banga, a commodities billionaire and chairman of Hong Kong-based Caravel Group, held an 8.7% stake in Nykaa before it listed in 2021. The Nayar family, who founded the company, still owns 52% and has not sold any shares since the IPO.
This latest sale comes nearly a year after Banga divested over four crore shares—amounting to a 1.43% stake—at ₹208.30 apiece in August 2024, netting ₹851.5 crore. Following that transaction, his holding fell from 6.40% to 4.97%.
For the quarter ended 31 March, Nykaa reported a near three-fold jump in consolidated net profit to ₹20.28 crore from ₹6.93 crore a year earlier. Revenue from operations rose 23.61% to ₹2,061.76 crore from ₹1,667.98 crore in FY24.
Over the past year, the company has launched a record number of global beauty brands, forging partnerships with Yves Saint Laurent, NARS, Kerastase, Eucerin, GHD, Armani Beauty, Supergoop, and Nexxus, among others.
Nykaa is now shifting toward a more profitable growth trajectory, aiming for mid-20% annual growth in its beauty and personal care (BPC) business over the next five years. The strategy includes deeper market penetration, premiumization, and enhanced convenience.
The company plans to scale its physical footprint across tier 2 and 3 cities, increasing store count from 237 to over 500 by FY30. It is also investing heavily in regional influencer marketing, working with over 28,000 influencers to drive discovery.
To improve delivery speeds, Nykaa is ramping up its logistics infrastructure. Its two-hour fulfilment model, ‘Nykaa Now’, is live in seven metros. This is supported by a network of 44 warehouses and 40+ rapid hubs, enabling same- or next-day delivery in key cities.
