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ICICI Prudential Mutual Fund bought 1.5 crore Nykaa shares for ₹256 crore from Canada Pension Plan as the latter sold its stake. The deal was executed at an average price of ₹174.04 per share. The Canadian fund's stake in the company drops below 1%
ICICI Prudential Mutual Fund recently made a significant investment in Nykaa, acquiring 1.5 crore shares at an average price of ₹174.04 per share. This transaction, valued at ₹256 crore, marks a shift in the ownership structure of the beauty and wellness e-commerce platform.
The shares were purchased from the Canada Pension Plan Investment Board, which, as of March, held a 1.5% stake in Nykaa. Following this transaction, the Canadian fund's stake in the company will drop to below 1%.
Previously, in November 2022, the Canada Pension Plan had acquired 1.7 crore shares in Nykaa for ₹299 crore, at an average price of ₹175.25 per share.
ICICI Prudential Mutual Fund, the second-largest fund house in India, executed this purchase under two of its schemes—ICICI Prudential Technology Fund and ICICI Prudential India Opportunities Fund. This acquisition reflects the fund house's strategic interest in the burgeoning e-commerce sector.
Explore: Icici Pru Life Ins Co Ltd Share Price
Nykaa, listed under FSN E-Commerce Ventures, saw its shares reach a record high of ₹429 shortly after its market debut. However, the stock has since lost 58% of its value and is currently trading below the offer price. Despite this decline, the company has demonstrated robust financial performance.
Additional Read: Fsn E Commerce Ventures Share Price
Nykaa's brick-and-mortar retail business faced challenges due to elections and heat waves across North India. Nevertheless, the company's strong online presence and financial growth indicate a positive outlook for the future.
ICICI Prudential's substantial investment in Nykaa underscores the mutual fund's confidence in the company's growth potential, despite recent stock market challenges. This move aligns with broader trends in the investment landscape, where major funds are increasingly focusing on tech-driven and e-commerce ventures.
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This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
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