It has been reported that Harindarpal Singh Banga, the founder of The Caravel Group and an early investor in Nykaa, is considering reducing his stake in the beauty e-commerce giant by 2% to 2.5% through a block deal valued at $150 million (approximately INR 1,284 crore).

As reported by NDTV Profit, Banga would sell the shares at a 4% discount to the BSE’s closing price of INR 211.8 today.

According to the company’s shareholding pattern available with BSE, Banga owned a 4.97% stake in Nykaa at the end of the March quarter of 2025.

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Prior to Nykaa’s IPO in November 2021, he and his wife Indra Banga owned an 8.7% stake in the company.  The duo divested roughly 1 Cr shares, which constitutes about 25% of their stake in the company.

Banga divested a 1.43% stake later in August shut in August 2023 for INR 851 Cr.

This development occurs at a time when Nykaa’s shares have risen more than 20% year-to-date.  This has arisen as a result of its enhancing financial performance.

In Q4 FY25, Nykaa’s consolidated net profit skyrocketed by 110% to INR 19.1 Cr from INR 9.1 Cr in the same period last year, and its operating revenue increased by 24% to INR 2,061.8 Cr compared to INR 1,667.9 Cr in Q4 FY24.

For the complete fiscal year, the company’s net profit increased by 82% to INR 72.1 Cr, and revenue rose by 25% to INR 7989.8 Cr.

Nykaa announced last week that it aims to achieve EBITDA break-even for its fashion vertical within the current financial year.

Additionally, the firm has rolled out its rapid commerce service, ‘Nykaa Now’, which is currently operational in seven cities.  The company provides beauty product deliveries within a 30-minute to 2-hour timeframe under it.