FSN E-Commerce Ventures Ltd (Nykaa) on Thursday informed stock exchanges that its fundraise and investment committee approved the proposal of investment by a subsidiary of the company Nessa International Holdings Limited into its wholly-owned subsidiary Nysaa Beauty LLC for operational support.
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This is Nessa International Holdings’ first investment of an amount up to $2.5 million in one or more tranches.
The investment is expected to be completed by March 31, 2024. Nessa International would acquire equity shares of Nysaa Beauty LLC at a price of AED 1,000 per share.
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Following the development, Nykaa shares closed higher after remaining in the red throughout the session. The stock closed at Rs 164, up 0.46 per cent.
Nysaa Beauty LLC was recently formed in the United Arab Emirates (‘UAE’) to undertake an omni-channel, multi branded beauty retail operation business in the UAE. The transaction is being conducted at ‘arms length’ as Nysaa Beauty LLC is a subsidiary of the company.
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Nessa International, a subsidiary of Nykaa will hold 100 per cent of the shareholding of Nysaa Beauty LLC. Since the company through FSN International Limited (wholly owned subsidiary) holds 55 per cent of shareholding of Nessa International, the company will indirectly hold 55 per cent of shareholding of Nysaa Beauty LLC,
