The richest self-made Indian woman, Falguni Nayar, 59, surpassing Biocon founder Kiran Mazumdar-Shaw (net worth of Rs 24,800 crore) earlier this month according to the IIFL Wealth Hurun India Rich List 2022. The price of Nykaa stock has decreased by nearly 62% from its 52-week high of Rs 2,574.
With a net worth of Rs 38,700 crore, Nykaa founder Falguni Nayar was declared the richest self-made woman in India by the IIFL Wealth Hurun list last month. However, since then, her e-commerce giant’s stock price has dropped by 24% in a month, wiping out Rs 8,300 crore from her fortune. After making a splash on the stock market last year and giving investors profits of 80%, Nykaa has now fallen.
New Delhi: When you consider purchasing makeup, Nykaa comes to mind. The e-commerce beauty store has proven a massive hit in India, whether you’re seeking for makeup from a major, expensive brand or something more reasonably priced. The success of Nykaa can be seen from the angle that it helped make its CEO and founder Falguni Nayar the richest self-made woman in India.
Often referred to as the “makeup queen of India,” Nayar’s fortune peaked earlier this month at almost $4 billion (Rs 32,915 crore), but it has since decreased by $1 billion (nearly Rs 8,300 crore). She was estimated to be worth $4.08 billion on the 12th of this month, according to Forbes Billionaires List, thus this dramatic decrease has happened in just a fortnight.
In the IIFL Wealth Hurun India Rich List 2022, 59-year-old Nayar overtook “biotech queen” and Biocon founder Kiran Mazumdar-Shaw (net worth of Rs 24,800 crore) to become the richest self-made Indian woman.
The 59-year-old, who saw a huge 345 percent increase in her net worth, overtook businessman Ravi Modi of Vedant Fashions as the year’s second-largest wealth gainer. In the past year, Nayar’s wealth increased to Rs 30,000 crore, giving him a net worth of Rs 38,700 crore.
Why did she lose $1 billion in assets?
The shares of Nykaa or FSN E-Commerce Ventures have been falling for the last few days, and they have dropped more than 20% in the last two weeks, reaching a new 52-week low of Rs 975.5 on Friday. As a result, Nayar’s wealth, which was estimated to be worth $3 billion at the end of Friday’s session, has been reduced by $1 billion.
The new-age stock, which over doubled on the day of its debut on November 10 of last year, is currently down approximately 62 percent from its 52-week high of Rs 2,574. In addition, the IPO investors, who purchased the stock at the issue price of Rs. 1,125, now face a 13% loss.
The worldwide IT market meltdown and the impending November 10 expiration of the pre-IPO investors required one-year lock-in caused Nykaa shares to decline.
The cosmetics e-commerce platform announced a 5:1 bonus share issue earlier in the month. For each share they currently own, shareholders will receive five bonus shares.
Former investment banker Nayar created the e-commerce portal Nykaa in 2012, and after her company floated on the stock exchange last year, she became a billionaire and India’s richest self-made woman.