American investment company TPG Capital has likely offloaded ₹1,000 crore shares of FSN E-Commerce Ventures, which operates under the Nykaa brand, via a block deal on Friday.
According to the NSE morning block deal window ahead of Friday's opening trade, 5.42 crore equity shares of Nykaa exchanged hands at an average of Rs 184.55 apiece. The deal provides a discount of up to 0.6% from Thursday's closing rate of Rs 185.60 per share.
This is the second such large trade by TPG in Nykaa after its lock-in expiry for pre-IPO investors came to an end on 10 November. The American PE investor sold 1.08 crore equity shares on 11 November at Rs 186.40 apiece, translating into a deal worth Rs 202.1 crore.
The promoters and investors cannot liquidate the pre-IPO securities held by them during the lock-in period.
Since the lock-in expiry, there have been multiple bulk deals in Nykaa.
Shares of Nykaa have been under pressure since lock-up ended last week. The company's shares fell 4% to ₹171 at day's low, extending the four-day losses to around 20%.
As per data from the NSE, Lighthouse India sold 96,89,240 shares on 10 November at average price of ₹171 per share. Among other major sellers, Segantii India Mauritius sold 33,73,243 shares at average price of ₹199 on 15 November.
Stocks often fall after lock-ups expire, as investor selling puts downward pressure on shares. Food-delivery platform Zomato had plunged to a record low in July when a lock-up on its shares expired.
Since Nykaa's bumper market debut in November 2021, its shares have tumbled to drop below their IPO price.
In the July-September quarter, Nykaa had reported net profit of about ₹5 crore, helped by strong demand heading into the festive season. Revenue rose 39% to ₹1,231 crore.