Nykaa block deal: 3.7 crore shares change hands in block deal

Shares of FSN E-Commerce Ventures, the parent company of Nykaa are up by 0.4 percent from the previous close on BSE at Rs 173.15 after the news that a large Trade, 3.7 crore shares or 1.3 percent equity of FSN E-Commerce Ventures changed hands in a block deal in early morning trade.

At 09:55 am shares of FSN E-Commerce Ventures were at Rs 173.4 up by 0.41 percent from the previous close on the BSE.

The stock has struggled in the past six months as shown in the chart.

Last month, in another block deal 1.8 crore shares of FSN E-Commerce Ventures changed hands. Lighthouse India was likely the seller. It was earlier reported that the private equity firm was likely to sell 1.8 crore shares or 0.65 percent stake worth Rs 320 crore in FSN E-Commerce Ventures via a block deal. Bank of America was chosen as the broker for the deal.

Karan Taurani, SVP-Research Analyst, Elara Securities had given a buy rating on Nykaa for a target price of Rs 240. The only risk factor for Nykaa, according to Taurani, is the fashion business. "I think that segment is highly competitive, too much of discounting. So I think that's the only monitorable in terms of where the fashion losses actually come down or probably that business goes to break even."

In the past month shares of FSN E-Commerce Ventures have slipped over 9 percent and the year so far they have dropped over 50 percent.