Shares of FSN E-Commerce Ventures, the parent firm of online beauty retailer Nykaa, jumped more than 3% as markets opened on on Friday.

What Happened: Harindarpal Singh and Associates was looking to offset its holdings in the e-commerce firm, according to media reports on Thursday. Singh Banga and his wife Indra Banga will likely sell a 1.4% stake through block deals.

A block deal was executed on the bourses early on Friday, with 4.1 crore shares being sold.

The investors were reportedly looking to sell their stake at a floor price of ₹198 each, which represents a 5.6% discount to the company's closing price of ₹209.9 on Thursday.

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At the end of June 30, Harindarpal Singh Banga held 6.4% of the company, according to the shareholding data available on exchanges, which means the proposed sale will bring his holdings down to 5%. 

Nykaa reported a 192% surge in its net profit to ₹9.64 crore in its first quarter earnings whereas revenue soared by 23% to ₹1,746.11 crore. Despite the strong earnings growth, the numbers did not meet analysts' expectations. 

On Wednesday, Nykaa's shares jumped as much as 19% to hit a 52-week high. The rally marked its biggest intraday gain in two years. The stock has risen 16% in the past five days.

Price Action: Shares of FSN E-Commerce Ventures opened 3.21% higher at ₹217.17 on Friday.

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