What's Going On With Nykaa Share Price Today?

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.

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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.

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