Shares of FSN E-Commerce Ventures, the parent company of Nykaa, fell over 3% in trading on Wednesday after it announced the incorporation of a new unit, Nykaa Essentials Private Limited, dedicated exclusively to the beauty and personal care sector.
During intraday trading, Nykaa’s stock dropped by as much as 3.37%, reaching a low of Rs 160.20 per share, marking the largest intraday decline since February 10, 2025. The stock later recovered somewhat, closing 2% lower at Rs 162.40, against a 0.65% decline in the broader Nifty 50 index by 12:05 PM.
Since its peak in August 2024, FSN E-Commerce Ventures’ stock has fallen nearly 30%, delivering almost no returns in 2025 so far. The stock also recorded a 5.6% loss in 2024, and since its listing in November 2021, it has plunged by nearly 55%.
In an exchange filing on Tuesday, the company revealed that Nykaa Essentials Private Limited will focus on trading and dealing in a range of products, including cosmetics, toiletries, beauty and personal care items, as well as healthcare, lifestyle, and perfumery products. FSN E-Commerce Ventures will retain full ownership of Nykaa Essentials, which has yet to begin operations.
The authorized share capital of Nykaa Essentials is set at Rs 100 million, with a paid-up share capital of Rs 5 lakh. FSN E-Commerce Ventures clarified that the formation of the new subsidiary does not involve any related party transactions.
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