The number of small retail shareholders, or those with authorised share capital of up to ₹2 lakh, have declined by over 1 lakh during the last two years.
Starting June 2023, when the number of retail shareholders in Nykaa stood at 5.85 lakh, that number has come down to 4.62 lakh at the end of the March quarter, according to the shareholding pattern on BSE.
| Quarter | Retail Shareholders |
| March 2023 | 5.67 Lakh |
| June 2023 | 5.85 Lakh |
| March 2024 | 5.21 Lakh |
| June 2024 | 4.79 Lakh |
| March 2025 | 4.62 Lakh |
Similarly, public shareholding in the stock has halved over the last two years, with the figure coming down from 26.1% to 13.8%.Its not just retail shareholders, even foreign portfolio investors have trimmed their stake in Nykaa over the last two years. From over 12.2% stake that they owned at the end of March 2023, that figure has come down to 8.86% at the end of March 2025. No major foreign institutions feature in the list of prominent shareholders, as their holdings could be less than 1%.
| Quarter | FPI Shareholding |
| March 2023 | 12.26% |
| June 2024 | 10.48% |
| September 2024 | 10.13% |
| December 2024 | 9.05% |
| March 2025 | 8.83% |
If retail and FPIs have both sold, then who was the buyer? India’s domestic institutions, mutual funds and insurance companies combined. Over the last two years, this combination of domestic institutions have amped up their stake in Nykaa’s parent.Mutual Funds had a 5.14% stake in Nykaa at the end of the March quarter. Add to that the 2.42% stake that insurance companies owned, takes the total to 7.56%. That figure has more than tripled over a two-year period, as mutual funds currently own 19.61% stake and another 5.22% is owned by insurance companies, taking the total stake to 24.83%.
| Quarter | MFs + Insurance Cos Stake |
| March 2023 | 7.56% |
| June 2024 | 18.29% |
| September 2024 | 21.83% |
| December 2024 | 23.56% |
| March 2025 | 24.83% |
ICICI Prudential, Mirae Asset, SBI MF, Nippon Life India, Kotak MF, HDFC MF, are some of the prominent stakeholders in Nykaa currently.
Having IPOed in 2021, Nykaa’s shares have delivered returns of only 8% from their issue price during this four-year period. Between 2022 and 2024, the stock fell 42% but has gained 24% so far in 2025.
In an interaction with analysts, Nykaa’s management highlighted that there is a strong runway for the beauty market, and that they are targeting a break-even for the fashion business in the current financial year, along with margins of 10%. Until financial year 2030, the company projects its own brands to grow at a Compounded Annual Growth Rate (CAGR) of 30%.
The stock was in the news on Thursday after Harindar Pal Singh Banga, an important shareholder in the company, along with his wife Indra, were sellers in a block deal worth over ₹1,200 crore.
Shares of Nykaa ended 4.4% lower on Thursday at ₹202.29.
