The Canada Pension Plan Investment Board (CPPIB) has sold 1.47 crore shares of Nykaa for INR 256 crore.

In the fourth quarter of FY24, Nykaa’s net profit more than doubled to INR 9.07 crore compared to the previous year's period.

On Wednesday, July 10, the Canada Pension Plan Investment Board (CPPIB) sold more than 1.47 crore shares (14,734,000) of the beauty e-commerce company Nykaa for INR 256.4 crore through a block deal. 

According to the National Stock Exchange (NSE), CPPIB sold the shares at INR 174.04 each. These shares were bought by ICICI Prudential Mutual Fund India. By the end of March 2024, CPPIB had a 1.47% stake in Nykaa, which equaled 4.20 crore shares. 

On the same day of the block deal, CPPIB also sold its remaining 3.18% stake in the logistics company Delhivery, earning INR 910 crore. After the sale, Nykaa’s share price fell slightly by 0.31% to INR 174.85 on the Bombay Stock Exchange (BSE).

Last month, ICICI Securities upgraded Nykaa’s rating from “Hold” to “Add” and increased the price target from INR 175 to INR 195. 

Earlier this week, Nykaa announced it expected a strong consolidated revenue growth of around 22-23% year-on-year (YoY) for the first quarter of FY25. The company expects its beauty segment to grow by 22-23% YoY, while the fashion segment is expected to see a 20% growth.

In the fourth quarter of FY24, Nykaa’s net profit more than doubled to INR 9.07 crore compared to the previous year's period. Its operating revenue increased by 28% to INR 1,667.9 crore from INR 1,311.4 crore in Q4 FY23.

Recently, Nykaa announced the creation of a new subsidiary in Qatar called Nysaa Cosmetics Trading. This new branch is part of Nykaa’s plans to expand in the Middle East and will handle international exports and the sale of beauty and personal care products both online and offline.