Shares of Nykaa parent FSN E-Commerce Ventures  declined nearly 5% in opening trade on Thursday, amid strong volumes. As many as 6.74 crore shares worth around ₹1,366.68 crore changed hands in a block deal on the BSE.

The names of the buyers and the sellers were not known immediately but reports suggest that Harindarpal Singh Banga, jointly with Indra Banga, was looking to sell a 2.1% equity stake worth around ₹1,200 crore in the company via block deals.

The deal size is pegged at around 6 crore shares, representing 2.1% of the company’s total shareholding, being offered at a floor price of ₹200 per share, a discount of nearly 5.6% to Nykaa’s Wednesday closing price of ₹211.8 on the BSE.

Driven by strong volumes, Nykaa shares declined by as much as 4.8% to ₹201.55 on the BSE. At the time of reporting, the large-cap stock was trading down by 4.3% at ₹202.65 per share, with a market capitalisation of ₹57,966 crore.

The shares of the beauty and fashion platform opened down by 3.16% at ₹205.10, after ending 2.3% lower in the previous session. Meanwhile, the BSE Sensex and the NSE Nifty were trading marginally higher by 0.15% each.

According to BSE data, Harindarpal Singh Banga currently holds a 4.97% stake in FSN E-Commerce Ventures, amounting to 14.20 crore shares. In August 2024, Harindarpal Banga along with Indra Banga, had offloaded 4.09 crore shares, equivalent to a 1.4% stake, via a block deal.

Last week, Nykaa at its annual Investor Day event, showcased the company’s aggressive growth aspirations across beauty and personal care (BPC) and fashion segments, with its eB2B business already witnessing strong growth momentum.

Nykaa’s management outlined a comprehensive growth roadmap across its key business segments. In the BPC segment, the company expects gross merchandise value (GMV) to grow at a mid-20s per cent CAGR over FY25–FY30E, JM Financial said in a report. Contribution margins are expected to remain broadly stable, as Nykaa continues to invest in customer acquisition and retention efforts. The company also aims to significantly scale its retail footprint, targeting 500+ stores across 100+ cities by FY30, it said.

In the fashion vertical, net sales value (NSV) is projected to grow by 3–4x over the next five years, supported by improving marketing efficiencies, optimising the mix of owned brands, and lowering fulfilment and overhead costs. These initiatives are expected to drive EBITDA margin expansion by approximately 1,850 basis points, with the segment likely to reach EBITDA break-even by FY26E and achieve steady-state margins of over 10%.

The Superstore business is on a path to EBITDA break-even at four times its current scale, while GMV is targeted to grow to three times current levels in the medium term. The House of Nykaa portfolio is also expected to witness robust growth, with BPC GMV projected to grow at a 30% CAGR, surpassing ₹6,000 crore by FY30E.

On the international front, Nykaa has made a strategic entry into the GCC beauty market under the brand ‘Nysaa’. The website went live in January 2024, followed by the opening of the first store in March 2024. Currently, there are four operational stores, with two to three additional ones planned in the coming quarter.

After Nykaa's Investor Day, JM Financial reiterated a ‘BUY’ call on the company, citing that the company remained one of the highest compounding consumption plays in India. “While current valuations may appear stretched on FY27 basis, we believe that one should adopt a longer-term perspective, as Nykaa’s high-growth trajectory and compounding remain intact over the medium to long term,” it said.

“Moreover, the company’s ability to deliver robust growth in a tepid demand environment over the last year, along with margin enhancement further underlines its differentiated offering,” it said.

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