You think of buying makeup and Nykaa pops into your mind. Whether you are looking for makeup from a big, luxury brand or something budget-friendly, the e-commerce shopping beauty store has become a huge success in India. Nykaa’s success can be viewed in the perspective that it made its founder and CEO Falguni Nayar India’s richest self-made woman.
Often called the ‘makeup queen of India’, Nayar’s fortune was worth over $4 billion (Rs 32,915 crore) earlier this month, however, it has now dried up by $1 billion (nearly Rs 8,300 crore). And this drastic decline has come in just a fortnight as she was worth around $4.08 billion on 12th of this month, according to Forbes Billionaires List.
59-year-old Nayar, India’s richest self-made woman, surpassed ‘biotech queen’ and Biocon founder Kiran Mazumdar-Shaw (Rs 24,800 crore net worth) to become the richest self-made Indian woman earlier this month in the IIFL Wealth Hurun India Rich List 2022.
Witnessing a massive 345 per cent jump in her net wealth, the 59-year-old became the second biggest wealth gainer this year after businessman Ravi Modi of Vedant Fashions. Nayar’s fortune grew to Rs 30,000 crore in the last year to report a net worth of Rs 38,700 crore.
Why she lost $1 billion of her net worth?
Nykaa or FSN E-Commerce Ventures shares have been on a downtrend for the past few days and tanked over 20 per cent in the last two weeks to hit a fresh 52-week low of Rs 975.5 on Friday. This has led to the $1 billion wipe out of Nayar’s wealth as her fortune was estimated to be at $3 billion at the end of Friday’s session.
The new-age stock which nearly doubled on listing day on November 10 last year is now down about 62 per cent from its 52-week high at Rs 2,574. Moreover, the IPO investors, who got the stock at an issue price of Rs 1,125, are now looking at a 13 per cent loss.
While Nykaa stock took a beating in view of the crash in tech stocks globally and as the mandatory one-year lock-in of pre-IPO investors is set to expire on November 10.
Meanwhile, earlier the month, the beauty e-commerce platform announced a 5:1 bonus share issue. Shareholders will get five bonus shares for each share they hold.
A former investment banker, Nayar founded the e-commerce portal Nykaa in 2012 and became a billionaire and India’s richest self-made woman last year after her company got listed on the bourse.
