Please find enclosed the intimation regarding completion of the 2nd tranche of investment into Earth Rhythm Private Limited
Awaiting price reaction for this filing.
Nykaa has completed the second and final tranche of its investment in Earth Rhythm Private Limited (ERPL), investing Rs. 5 crore by subscribing to 4,072 Series A Optionally Convertible Redeemable Preference Shares at a face value of Rs. 10 each. After this investment, Nykaa's stake in ERPL stands at approximately 75.83% on a converted basis. ERPL became a Nykaa subsidiary after the first tranche in November 2024. The fresh funds will be used to meet ERPL's working capital needs and support growth in the clean beauty segment.
This is a follow-on investment in an already-owned subsidiary, not a new strategic move. The Rs. 5 crore size is small relative to Nykaa's overall business and is unlikely to move the stock. It reinforces Nykaa's commitment to expanding its owned-brand portfolio in the clean beauty category.