The shares of the leading e-commerce beauty product platform gained around 1.7 percent to ₹166 per share on Friday after the company board approved to invest up to ₹2.5 million in its United Arab Emirates (‘UAE’) based subsidiary Nysaa Beauty LLC.
FSN E-Commerce Ventures Ltd is a Mid-cap stock, with a market capitalization of ₹46,892 crores. At 11:50 a.m., the company shares were trading at ₹164.35 per share, up 0.74 percent on the National Stock Exchange.
On Thursday, February 01, 2024. The company of the Board of Directors approved the proposal of investment of up to ₹2.5 million in Nysaa Beauty LLC,a subsidiary of Nessa International Holdings Limited (‘Nessa International’), which is a wholly owned subsidiary of FSN E-Commerce Ventures Ltd. The investment is expected to be completed by March 31, 2024.
Nysaa Beauty LLC was recently formed in the United Arab Emirates (‘UAE’) to undertake an omnichannel, multi-branded beauty retail operation business in the UAE.
Nessa International, a subsidiary of the Company will hold 100% of the shareholding of Nysaa Beauty LLC. Since the Company through FSN International Limited (wholly owned subsidiary) holds 55% of the shareholding of Nessa International, the Company will indirectly hold 55% of the shareholding of Nysaa Beauty LLC, UAE.
Nessa International is making its first strategic investment in Nysaa Beauty LLC, for operational support. Company reported in its exchange filing.
The company’s revenues have increased by 22 percent year on year from ₹1,230 crore in Q2FY23 to ₹1,507 crore in Q2FY24, while net profit has increased by 50 percent from ₹ 5.19 crore to ₹ 7.80 crore.
FSN E-commerce Ventures Ltd popularly known as “Nykaa” is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers.
The company has a diverse portfolio of beauty, personal care, and fashion products, including owned brand products manufactured by it.
The company shares hit its 52-week high price of ₹195.40 apiece on January 10, 2024.FSN E-Commerce Ventures shares have gained 11 percent in the last six months and 12 percent in a year.
The company also expanded its offline stores during the September quarter, by adding 13 stores, totaling up to 165.
In the September quarter of 2024, the company’s beauty and personal care Gross Merchandise Value (GMV) grew 23% YoY, Net Sales Value(NSV) grew 19% YoY and Fashion GMV grew 27% YoY, Other category GMV grew 54% YoY.
Written by Omkar Chitnis
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