NYKAA

The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Refiles to include updated CNBC-TV18 report in context news.

By Shritama Bose

MUMBAI, July 14 (Reuters Breakingviews) - Indian consumers are shaking a global giant awake. Last Thursday, Unilever ULVR.L named Priya Nair CEO of its local unit to replace Rohit Jawa, who will leave at the end of July after completing less than half of his term. The $150 billion maker of Dove soap is struggling to grow in its second-largest market. The new chief’s biggest task is refreshing the unit's stale business.

The management rejig, which fuelled a 5% surge in Hindustan Unilever’s (HUL) HLL.NS shares on Friday, follows a change of guard at the London-headquartered group and years of weak performance at the Indian unit. Over the past two years, HUL's sales grew just 2%, far behind Nestle NEST.NS which managed 9%. This bleak performance is captured in the Mumbai-listed shares. HUL trades at 52 times the unit’s expected earnings for 2025, lagging Nestle India, which trades at 68 times.

There are multiple reasons for this yawning gap. To start, the owner of the Lakme beauty brand is failing to keep up with homegrown challengers like $7 billion Nykaa NYKA.NS and $1 billion Honasa Consumer’s HONA.NS Mamaearth, which offer more differentiated beauty products to the well-heeled and upwardly mobile Indian consumers. At the lower end of the market, private labels are finding favour with shoppers on a budget. HUL reacted to the trend with a new strategy involving a $311 million acquisition of skincare brand Minimalist in January, among other things, but it needs to do more. It could consider adding Temasek-backed fast-growing packaged snacks maker Haldiram's to complement its portfolio. Introducing global brands like Ben & Jerry's ice cream or Maille condiments would offer an easy refresh of its India shelves too.

A shifting market structure has pulled the rug from under the vaunted distribution model of the Brooke Bond tea maker. Urban Indians are increasingly ordering everything from milk to lipstick through apps like Blinkit, backed by $28 billion food delivery champion Eternal ETEA.NS, which offers 10-minute deliveries and a superior product selection. HUL is yet to update its supply chains to keep up with the speedy replenishment this channel demands. This is a problem given this end of the grocery market is growing 70% annually, per Bernstein.

Nair currently presides over Unilever’s beauty business and is an old India hand. That sets her up nicely to tackle the aforementioned issues. And if she manages to revitalise the business, it will also help the larger Unilever group, which owns 62% of the Indian unit. But given how far Unilever's Indian business is lagging, the cleanup will take time.

Follow Shritama Bose on Linkedin and X.

CONTEXT NEWS

Unilever's Indian unit on July 10 said Priya Nair will take charge as its CEO on August 1. Nair currently serves as president of the London-headquartered company's beauty and wellbeing division.

She will take over from Rohit Jawa, who has held the top role at Hindustan Unilever since June 2023. Jawa will leave the group without completing his five-year tenure as CEO of the unit.

Hindustan Unilever's Mumbai-listed shares rose 5% on July 11, following the announcement.

The unit's chief financial officer, Ritesh Tiwari, is likely to step down from the function and be moved to a global role, CNBC-TV18 reported on July 11, citing unnamed sources. The report was later updated to remove the reference on his move to a global role.

(Editing by Aimee Donnellan; Production by Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

** India's Nykaa FSNE.NS falls nearly 5% to 201.5 rupees; on course for biggest daily pct losses in a month

** Banga family, one of the early investors in FSNE, to sell 2% stake for $140.3 million via block deal at 5.5% discount to Wednesday's closing price, per multiple news reports

** FSNE did not immediately respond to a Reuters request for comment

** More than 32 million shares traded, ~3.5x six-month average daily volume

** Harindarpal Singh Banga holds 4.97% stake in FSNE as of quarter ended March, exchange data shows

** Reuters was unable to reach Banga immediately

** YTD, FSNE up 23%

(Reporting by Vivek Kumar M)

(([email protected];))

July 2 (Reuters) - Fsn E-Commerce Ventures Ltd FSNE.NS:

• INDIA'S BANGA FAMILY LOOKS TO SELL 12.84 BILLION RUPEES STAKE IN NYKAA VIA BLOCK DEAL - NDTV PROFIT CITES SOURCES

Source text: [ID:]

Further company coverage: FSNE.NS

(([email protected];;))

** India's Nykaa FSNE.NS, Coromandel International CORF.NS and Adani Energy Solutions ADAI.NS likely to enter MSCI India Standard index in May rebalancing, says JM Financial

** FSNE has high probability of inclusion, while CORF and ADAI have low probabilities

** Thermax THMX.NS likely to be excluded from the index as part of rebalancing

** Index provider MSCI to announce rejig on May 13, post market hours. Changes to be effective from June 3

** Rejig could lead to inflows between $200 million and $270 million each into CORF, FSNE and ADAI

** CORF, FSNE and ADAI up 0.6%, 0.9% and 1.9%, respectively on the day; THMX flat

(Reporting by Vivek Kumar M)

(([email protected];))

** Brokerage UBS upgrades rating on Nykaa FSNE.NS to "buy" from "neutral", cuts PT to 200 rupees from 205 rupees

** Despite challenging macro environment and entry of several well funded competitors, Nykaa has maintained "healthy" revenue growth in core beauty products segment at 20%-25%, UBS says

** Moreover, the beauty products retailer gets only 30% of its order value from top 8 cities and thus disruption from quick commerce is "manageable" - UBS

** Stock down 2% on Friday, set to snap four-session gaining streak

** Avg rating of 22 analysts on Nykaa at "buy"; median PT is 192.12 rupees - data compiled by LSEG

** Stock down 4.2% since it missed Q3 profit estimates in February

(Reporting by Kashish Tandon in Bengaluru)

(([email protected]))

Feb 10 (Reuters) - Fsn E-Commerce Ventures Ltd FSNE.NS:

• Q3 CONSOL NET PROFIT 261.2 MILLION RUPEES; IBES EST. 385.7 MILLION RUPEES

• Q3 CONSOL REVENUE FROM OPERATIONS 22.67 BILLION RUPEES; IBES EST. 22.68 BILLION RUPEES

Source text: [ID:]

Further company coverage: FSNE.NS

(([email protected];;))

Jan 23 (Reuters) - FSN E-Commerce Ventures Ltd FSNE.NS:

• UNIT INCORPORATES NEW WHOLLY-OWNED SUBSIDIARY IN OMAN

Source text: [ID:]

Further company coverage: FSNE.NS

(([email protected];;))

** FSN E-Commerce Ventures FSNE.NS rises as much as 5.2% to 176.60 rupees

** Beauty products retailer Nykaa's parent sees Q3 consol net rev growth higher than mid-twenties vs Q3 FY24's 22.3% growth

** Elara Capital said Q3 will be a seasonally strong quarter for FSNE, boosted by the wedding season

** Stock set for sixth consecutive session of gains

** More than 5 mln shares traded, 0.6x the 30-day avg

** Stock rated "hold" on avg; median PT is 200 rupees - LSEG

** FSNE fell 5.9% in 2024

(Reporting by Ashish Chandra in Bengaluru)

(([email protected] (+91 7982114624))

Nov 12 (Reuters) - Fsn E-Commerce Ventures Ltd FSNE.NS:

• FSN E-COMMERCE VENTURES Q2 CONSOL NET PROFIT 100.4 MILLION RUPEES; IBES EST. 286.8 MILLION RUPEES

• FSN E-COMMERCE VENTURES Q2 CONSOL REVENUE FROM OPERATIONS 18.75 BILLION RUPEES; IBES EST. 19.02 BILLION RUPEES

Further company coverage: FSNE.NS

(([email protected];))

Oct 7 (Reuters) - Fsn E-Commerce Ventures Ltd FSNE.NS:

• FSN E-COMMERCE VENTURES- CONSOLIDATED NET REVENUE GROWTH OF MID-TWENTIES IN Q2 FY2025

• FSN E-COMMERCE VENTURES- BEAUTY VERTICAL DELIVERED NET REVENUE GROWTH IN MID-TWENTIES

• FSN E-COMMERCE VENTURES LTD - Q2 FASHION VERTICAL'S NSV GROWTH IS SEEN AT AROUND EARLY TEENS

Source text for Eikon: ID:nBSE1mBbfh

Further company coverage: FSNE.NS

(([email protected];))

Sept 20 (Reuters) - Fsn E-Commerce Ventures Ltd FSNE.NS:

• NESSA INTERNATIONAL INCORPORATED NYSAA TRADING LLC

Source text for Eikon: ID:nBSEbDdWrk

Further company coverage: FSNE.NS

(([email protected];;))

Aug 23 (Reuters) - Fsn E-Commerce Ventures Ltd FSNE.NS:

• ABU DHABI INVESTMENT AUTHORITY, INVESCO INDIA, MORGAN STANLEY AMONG BUYERS OF NYKAA SHARES VIA BLOCK DEALS - EXCHANGE DATA

• HARINDERPAL SINGH BANGA SOLD 40.9 MILLION SHARES OF NYKAA PARENT VIA BULK DEAL ON FRIDAY- EXCHANGE DATA

Source text for Eikon: [ID:]

Further company coverage: FSNE.NS

(([email protected];;))

** Shares of FSN E-Commerce Ventures Ltd FSNE.NS up 13.6% at 218.90 rupees, set for best day since late October 2022

** Parent of beauty products e-tailer Nykaa rose as much as 18.5% earlier in session

** Around 2.4 mln shares traded in 6 separate block deals ranging between 205.39 rupees per shr and 227.33 rupees per shr - NSE data

** All block deals at a premium to FSNE's previous close of 192.62 rupees

** Overall, 66.2 mln shares traded, 6.6x 30-day avg volume

** Analysts rate FSNE "buy" on avg, in-line with internet peer Zomato ZOMT.NS - LSEG

** Stock extends YTD gains to 24%

(Reporting by Nandan Mandayam in Bengaluru)

(([email protected]; Mobile: +91 9591011727;))

Aug 13 (Reuters) - Fsn E-Commerce Ventures Ltd FSNE.NS:

• APPROVED ACQUISITION OF SHARES IN UNIT DOT & KEY WELLNESS

• ACQUISITION FOR CONSIDERATION OF UPTO 2.65 BILLION RUPEES

• APPROVED ACQUIRING SHARES, WARRANTS OF EARTH RHYTHM FOR UPTO 445 MILLION RUPEES

Further company coverage: FSNE.NS

(([email protected];))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, July 30(Reuters Breakingviews) - Indian equities are trading at eye-popping premiums, but a bit of caution is creeping into one corner of the market. SoftBank-backed 9984.T e-scooter maker Ola Electric on Monday launched its initial public offering, seeking a valuation of up to $4 billion. That's a quarter lower than its previous funding round in September, a sign that investor patience for unprofitable tech stars is running thin. It sends a warning to other upstarts eyeing a stock market debut.

It took Ola just three years to become the largest manufacturer of battery-run scooters in the world’s second-biggest market for two-wheelers, accounting for more than a third of sales during the year to the end of March. And its share is still growing.

It helps that the company founded by Bhavish Aggarwal has benefitted from New Delhi’s production-linked subsidies for making electric vehicles and the cells to fuel them. It expects to power its bikes with its own lithium batteries, starting next year.

Such stellar growth is appealing. Fidelity and Nomura are likely to be anchor investors, Reuters reported on Monday, citing unnamed sources with direct knowledge. Yet, the insistence on a down-round signals they want Ola’s valuation to hew closer to those of its listed competitors.

At the top end of its IPO price band, Ola’s enterprise value works out to $4.3 billion after accounting for outstanding debt and lease liabilities worth $325 million, according to Breakingviews calculations based on the company’s prospectus. That implies a multiple of 7 times its $600 million revenue for 2023 to 2024, higher than closest rival TVS Motor’s TVSM.NS 4.5 times and Bajaj Auto’s BAJA.NS 6 times. Both firms currently sell more gas guzzlers than EVs.

Profitability is front of mind for investors singed by the post-listing performance of India’s former tech poster children. Beauty retailer Nykaa’s parent FSN E-commerce FSNE.NS is trading at one-sixth its 2021 IPO price and Paytm owner One97 Communications’PAYT.NS losses are widening after regulators ordered its banking unit to wind down.

Aggarwal is betting on sales growth to drive margin gains. Using its own cells may also help Ola cut spending on a component constituting one-third of the overall cost of making an e-scooter, he said on Monday.

Investors are less willing to pay upfront for those gains. That’s a message for food delivery giant Swiggy, which has filed confidentially for a $1.3 billion float and whose bigger rival Zomato ZOMT.NS turned profitable in the last financial year.

Scale is still a big selling point in India, but it’s no longer an adequate one.

Follow @ShritamaBose on X

CONTEXT NEWS

SoftBank-backed Indian e-scooter maker Ola Electric will offer shares in a price band of 72-76 rupees ($0.86-$0.91) in its initial public offering, which will open on Aug. 2, the company said on July 29.

The offer is set to draw investor bids from Fidelity, Nomura and Norway's Norges Bank, as well as several Indian mutual funds, Reuters reported separately on the same day, citing two sources with direct knowledge.

(Editing by Antony Currie and Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

Corrects spelling of "forecast" in headline

** Shares of Nykaa parent FSN E-Commerce Ventures FSNE.NS swing to YTD gains after 2-day rally on upbeat FY26 forecast

** Stock last up ~2.7% on the day, adding to Friday's 2.4% increase and pushing stock to YTD gains of 1%

** Morgan Stanley says Nykaa's target of fashion business breaking even by FY26 is among "key positives"

** Macquarie Equity Research analysts "like" the breakeven aim, which is based on stronger premium positioning

** However, it flags muted margin outlook in mainstay beauty and personal care (BPC) segment; retains "underperform" rating

** FSNE, on an average, rated "buy" - LSEG data

** Nomura though, says FSNE may need to prioritise growth over margins in competitive fashion industry

** Trading vols 2x 30-day avg, but still trailing Friday vol

(Reporting by Hritam Mukherjee in Bengaluru)

(([email protected];))

** Shares of Nykaa parent FSN E-Commerce Ventures FSNE.NS rise 3.4% to 172.6 rupees

** Co says it expects EBITDA margin to improve by 2,000 bps in FY26 vs FY24

** It had reported a loss before interest, tax, depreciation and amortization margin of 10.3% in FY24

** Adds it expects advertisement rev recovery to boost profitability

** More than 14.5 mln shares change hands, 3.1x its 30-day avg

** Analysts covering the stock on avg have a "hold" rating; median PT 195 rupees - LSEG data

** Stock up ~3% so far this week

(Reporting by Ashna Teresa Britto in Bengaluru)

(([email protected] ; ( +91 8078332441))

** Shares of FSN E-Commerce Ventures FSNE.NS rise as much as 4.6% in early trade, trims some gains to last trade 2.1% higher to 182.95 rupees

** Nykaa parent's Q4 profit surged three-fold Y/Y

** Stock on track to post a gain in six out of the last seven consecutive sessions

** Jefferies says co's margin should improve including in FY25 mainly led by fashion and co's business-to-business shop Superstore

** Analysts' avg rating is "buy", median PT is 185 rupees - LSEG data

** FSNE up 5.2% YTD

(Reporting by Varun Vyas in Bengaluru)

(([email protected]))

BENGALURU, May 22 (Reuters) - India's FSN E-Commerce Ventures FSNE.NS, parent of online beauty products seller Nykaa, reported a nearly three-fold jump in quarterly net profit attributable to shareholders on Wednesday as consumers were drawn to the heavy discounts it offered.

The company also announced an investment of up to 200 million rupees ($2.4 million) in unit FSN International, which is an international exporter and retailer of beauty and personal care (BPC) products.

Consolidated net profit attributable to shareholders rose to 69.3 million rupees in the quarter ended March 31 from 24.1 million rupees a year ago.

Nykaa's end-of-season sales and the ‘Pink Love Sale’ offered ahead of Valentine's Day fuelled volumes, the company said in its quarterly update.

Affluent consumers also showed a preference for luxury makeup and fragrances from brands such as Estee Lauder, Bobbi Brown and Dior, which helped drive the 28% increase in revenue at 16.68 billion rupees.

Nykaa's BPC segment, the biggest in terms of revenue contribution, saw a 30% rise in gross merchandise value (GMV) - the monetary value of all its orders.

Its earnings before interest, tax, depreciation and amortization (EBITDA) margin expanded to 5.6% from 5.4% a year ago, while overall GMV rose 28% to 124.46 billion rupees.

Its fashion segment, which sells accessories and apparel, saw a 27% increase in GMV, as Nykaa continued to push out premium clothing.

Additionally, FSN E-Commerce's board approved the acquisition of the western wear and accessories business of Nykaa Fashion for 1.34 billion rupees. It also gave the go-ahead to the merger of Iluminar Media, a lifestyle, food and shopping website, into Nykaa Fashion.

Nykaa's shares closed 1% higher ahead of results.

($1 = 83.2717 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Eileen Soreng)

(([email protected];))

** Shares of Nykaa parent FSN E-Commerce Ventures FSNE.NS up ~3%, trimming some gains after rising as much as 5.5%

** The beauty products retailer expects Y/Y growth as percentage in the high twenties for Q4FY24 net sales value (NSV) and revenue

** Adds, witnessed strong growth momentum and customer demand in the qtr

** Over 8.1 mln shares change hands, 1.8x the 30-day avg

** Analysts' avg rating on stock is "Buy", their median PT is 183.5 rupees - a ~9% premium on last close - LSEG

** Including session's gains, stock down 0.3%

(Reporting by Manvi Pant in Bengaluru)

(([email protected]; +918447554364;))

** Shares of Nykaa parent FSN E-Commerce Ventures FSNE.NS are attractive post 12% drop this year, HSBC analysts say

** Co's beauty and personal care (BPC) business trades at appealing valuations, HSBC says

** Current valuation of 70x FY26 PE for the standalone BPC business implies long-term earnings compounding, analysts say

** Brokerage says co out-investing rivals in building its beauty ecosystem

** HSBC retains "buy" with target price of 240 rupees

** FSNE stock rated "buy"; median PT 183.50 rupees - LSEG data

** FSNE shares last down 0.1% at 152.20 rupees; stk rose over 12% last year

(Reporting by Sethuraman NR in Bengaluru)

(([email protected]; (+91 9945291420); Reuters Messaging: [email protected]))

** Shares of FSN E-Commerce FSNE.NS fall 2.7% to 155.6 rupees

** More than 1.4 mln shares changed hands in a block deal priced 156.5 rupees apiece- LSEG

** Shares exchanged at over 2% discount to Tuesday's close

** Twenty-one analysts covering the stock on avg have a "buy" rating; median PT is 183.5 rupees - LSEG data

** FSNE trading below its 50-day simple moving average (SMA) since Jan. 23 and 100-day SMA since March 4

** More than 5.1 mln shares change hands, 0.8x the 30-day avg

** Stock fell ~4% in Feb., marking three consecutive monthly falls

(Reporting by Ashna Teresa Britto in Bengaluru)

(([email protected] ; ( +91 8078332441))

March 1 (Reuters) - Fsn E-Commerce Ventures Ltd FSNE.NS:

• LAUNCHES BEAUTY RETAIL STORE IN DUBAI IN COLLABORATION WITH APPAREL GROUP

Source text for Eikon: ID:nBSE6DwQ5

Further company coverage: FSNE.NS

(([email protected];))

** Shares of Nykaa parent FSN E-Commerce Ventures FSNE.NS up as much 5.9% at 170 rupees, its biggest pct rise since Jan. 9, before trimming gains to last trade 1.1% higher

** Beauty products retailer's Q3 profit rises 97%, rev up 22.3%

** Co also approves 1.5 billion rupees investment in Nykaa Fashion

** More than 11.7 mln shares traded, 1.3x the 30-day avg

** Avg rating of 22 analysts covering the stock is "Buy;" their median PT is 185 rupees - LSEG

** Stock rose 12% in 2023

(Reporting by Aleef Jahan in Bengaluru)

(([email protected]))

BENGALURU, Feb 6 (Reuters) - India's FSN E-Commerce Ventures FSNE.NS, parent of online beauty products seller Nykaa, reported a nearly two-fold jump in quarterly profit on Tuesday on festive demand and said that its board approved the demerger of its business-to-business (B2B) segment.

The company's consolidated net profit rose 97% to 161.9 million rupees ($1.95 million) in the third quarter ended Dec. 31. It had posted a drop in net profit in three of its previous five quarters.

E-commerce companies rolled out multiple sales events in the quarter thanks to a delayed festive season that included festivals such as Dussehra and Diwali beginning in October.

The festive season in India brings in the lion's share of annual sales for retailers like Nykaa, which counts Tata Sons' Tata Cliq and Reliance's Tira among its competition.

Nykaa's earnings before interest, tax, depreciation and amortization margin grew to 5.5% from 5.3% a year ago while its overall gross merchandise value (GMV) - the monetary value of all its orders - grew 29% to 36.19 billion rupees.

The company's beauty and personal care (BPC) segment, the biggest in terms of revenue contribution, recorded a 25% uptick in GMV.

India's wedding season, which begins in December, also buoyed demand. Last quarter, the BPC segment dragged Nykaa's revenue to its slowest growth since listing.

Overall revenue for the retailer, which houses luxury brands such as Estee Lauder, Bobbi Brown and Dior, rose around 22% year-on-year, but stayed flat sequentially.

Its electronic B2B segment, Superstore by Nykaa, recorded a 68% year-on-year growth in GMV, the company said.

The business received board approval to be spun out into a separate unit called Nykaa E-Retail, to be housed under parent FSN E-Commerce, it added. It was not immediately clear how much the B2B segment contributed to Nykaa's total revenue.

Additionally, the company approved further investment in unit Nykaa Fashion via a rights issue worth 1.5 billion rupees. It also approved FSN's acquisition of the unit's lingerie and athleisure business on a slump-sale basis for 2.29 billion rupees.

($1 = 83.0551 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Janane Venkatraman )

(([email protected];))

** Shares of Nykaa parent FSN E-Commerce Ventures FSNE.NS extend losses, fall ~2% to 184 rupees

** Pre-IPO investor Lexdale International sold 0.9% stake in the beauty products retailer on Friday, per BSE data after market hours

** Stock fell 3.1% on Friday on reports of the stake sale

** Over 3.6 mln shares traded, 0.5x the 30-day avg volume

** Avg rating of 22 analysts equivalent of "buy," of which 4 rate it the equivalent of "sell"; median PT is 185 rupees - LSEG data

** Stock rose 12% in 2023

(Reporting by Nandan Mandayam in Bengaluru)

(([email protected]; Mobile: +91 9591011727;))

** Shares of FSN E-Commerce Ventures FSNE.NS extend gains to rise as much as 8.3% to 191.6 rupees, highest level since Nov 21, 2022

** Parent of cosmetics-to-fashion retailer Nykaa forecast strong Q3 sales growth on Sunday

** HSBC says Nykaa is well positioned for profitability and sustainable exponential growth, with its scale and leadership situated to capture long-term value in beauty and personal care

** Brokerage hikes target price to a street high of 250 rupees from 240 rupees, implying a 41.3% upside to stock's last close

** Net sales value growth in fashion vertical remained strong despite a relatively weaker festive demand, HSBC adds

** Expects Nykaa's revenue to double every two-three years in the next five years.

** Average analyst rating at "buy;" median PT is 175.50 rupees - LSEG data

(Reporting by Anisha Ajith)

(([email protected]))

** Shares of FSN E-Commerce Ventures FSNE.NS, parent co of cosmetics-to-fashion retailer Nykaa, rise as much as 5% to 182 rupees

** FSNE on Sunday said its beauty and personal care vertical's gross merchandise value (GMV) growth for Q3 is expected to be in mid-twenties, and net sales value (NSV) growth around 20% on a YoY basis

** Fashion vertical's GMV for Q3 expected to grow about 40%, with NSV growth expected in low thirties on YoY basis

** Stock last up 2.6% at 177.95 rupees

** Average analyst rating at "buy"; median PT is 173 rupees - LSEG Data

** Stock gained ~12.3% in 2023 and ~13.5% in December qtr, its second highest quarterly gain since listing in November 2021

(Reporting by Anisha Ajith in Bengaluru)

(([email protected]))

Adds details, analyst comment

BENGALURU, Nov 30 (Reuters) - India's Metro Brands METB.NS rose as much as 8.5% on Thursday to a record high, a day after the footwear retailer inked a deal with U.S.-based chain Foot Locker FL.N, which plans enter the Asian market in 2024.

Metro Brands, which has over 700 stores across the country, will own and operate Foot Locker stores, selling shoes from brands such as Nike NKE.N and Adidas ADSGn.DE.

About 809,000 Metro shares changed hands in morning trade, 6 times 30-day average of 136,000 shares, seeing most active session since Oct. 3.

"This is a favorable partnership agreement for Metro and is a value additive," Nuvama analysts said in a note.

The analysts said the new format stores for Metro can scale up to at least 200 stores, raising its target price for Metro Brands to 1,304 rupees from 1,142 rupees.

Meanwhile, FSN E-Commerce Ventures FSNE.NS, parent of Nykaa gained 0.4%. FSN's Nykaa Fashion will serve as the

exclusive e-commerce partner for the Metro-Foot Locker partnership.

Metro Brands shares, which are up over 56% so far this year, were last up 4%.

(Reporting by Ashna Teresa Britto; Editing by Mrigank Dhaniwala and Nivedita Bhattacharjee)

(([email protected];))

BENGALURU, Nov 29 (Reuters) - U.S. footwear and sportswear retailer Foot Locker FL.N said on Wednesday that it is entering the Indian market in 2024 under a deal with Indian peer Metro Brands METB.NS and cosmetics-to-fashion retailer Nykaa.

(Reporting by Hritam Mukherjee and Varun Vyas in Bengaluru; Editing by Pooja Desai)

(([email protected];))