Shares of Nykaa were gaining sharply on Friday after the beauty platform received approval for an investment into its United Arab Emirates-based subsidiary.
What Happened: FSN E-Commerce Ventures Ltd, the parent firm of Nykaa, said it has received approval from its fundraise and investment committee for an investment proposal by Nessa International Holdings Limited, a subsidiary of Nykaa, into its wholly-owned subsidiary Nykaa Beauty.
This would be Nessa International Holdings’ initial investment of up to $2.5 million in one or more tranches, with the completion expected by March 31, 2024.
See Also: RBI’s Clampdown On Paytm Payments Bank Has Indian Fintech Leaders Riled: Here’s What They’re Saying
Nessa International will acquire equity shares of Nysaa Beauty LLC for 1,000 Arab Emirates dirham per share.
Nysaa Beauty, recently established in the UAE, focuses on omnichannel, multi-branded beauty retail operations in the UAE. The transaction is considered at “arms length”, given that Nysaa Beauty LLC is a subsidiary of Nykaa.
As a result of this investment, Nessa International, a subsidiary of Nykaa, will hold a 100% shareholding in Nysaa Beauty. Since the company indirectly holds 55% of the shareholding of Nessa International through FSN International Limited (a wholly-owned subsidiary), it will hold 55% of the shareholding in Nysaa Beauty.
Price Action: Nykaa’s share price was up 1.04% at ₹164.90 near the start of trade on Friday.
Read Next: This 23-Year-Old Transforms Plastic Waste Into Kicks That Has A Lot Of Sneakerheads Talking
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.