FSN E-Commerce Ventures decided to approve further investment in its business Nykaa Fashion at a recent board meeting. Nykaa’s parent company is also considering restructuring its Nykaa Fashion business to streamline its operations.
The business’ board of directors approved additional investment in Nykaa Fashion through equity on a rights issue basis, ET Retail reported. Nykaa is a wholly owned subsidiary of FSN E-Commerce Ventures so the investment transaction will be handled as such, according to a regulatory filing by the business.
The funding will be used towards repaying loans granted by FSN E-Commerce Ventures to Nykaa Fashion. The business aims to have the investment completed by the end of the 2024 financial year on March 31.
FSN E-Commerce Ventures is keen to streamline operations at Nykaa Fashion and approved the acquisition of Nykaa Fashion’s lingerie and athleisure business as a going concern on a slump sale basis, the Economic Times reported. The deal will be carried out in accordance with the business transfer agreement which will be entered into by FSN E-Commerce Ventures and Nykaa Fashion on an arm’s length basis with an acquisition cost of Rs 229 crore.
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