FSN E-Commerce Ventures, which runs online marketplace for beauty and wellness products Nykaa, will launch its initial public offering (IPO) on October 28 to raise as much as Rs 5,352 crore. Nykaa will be the second Indian startup to go public this year after Zomato, which drew a huge opening in July. Paytm, PolicyBazaar and Mobikwik are others in line to list on the stock exchange. Paytm To Hike IPO Size to Rs 18,300 Crore As Alibaba’s Ant Financial, Other Investors Dilute More Stake
Nykaa was founded by investment banker Falguni Nayar in 2012. As you get ready for the listing, here is everything you need to know about the Nykaa IPO.
- The three-day share sale of Nykaa will launch on October 28 and close on November 1. A price band of Rs 1,085-Rs 1,125 per share for its Rs 5,352 crore IPO has been fixed by the company.
- The initial share sale comprises a fresh issue of equity shares worth Rs 630 crore and an offer for sale (OFS) of 4.19 crore shares by promoters and existing shareholders.
- Promoters of the company are Falguni Nayar, Sanjay Nayar, Falguni Nayar Family Trust and Sanjay Nayar Family Trust.
- Founded in 2012 by Falguni Nayar, Nykaa is a leading multi-brand beauty & personal care platform in India and has been ramping up its presence in the fashion and beauty space.
- The company plans to use IPO proceeds for expansion, by setting up new retail stores and establishing new warehouses. It also plans to retire some of its debt, which should bring down interest costs and further shore up its profitability
- Promoters Sanjay Nayar Family Trust and shareholders including TPG Growth IV SF Pte Ltd, Lighthouse India Fund III, Limited, Lighthouse India III Employee Trust, and some individual shareholders are selling shares in the OFS
- The company reported a net profit of Rs 61.9 crore for FY21 as compared to a a loss of Rs 16 crore in the previous fiscal. Its revenue from operations jumped from Rs 1,768 crore to Rs 2,441 crore.
- As of March 2021, the company had cumulative downloads of 43.7 million across all mobile applications and 86.7% of its online gross merchandise value came through its mobile applications
- Kotak Mahindra Capital Company, Morgan Stanley India Company, BofA Securities India, Citigroup Global Markets India, JM Financial and ICICI Securities are the lead book-running managers for the issue.
- The firm plans to list on November 11 on the leading stock exchanges BSE and NSE.
Most investors and analysts remain optimistic about the Nykaa IPO as it is a leading player in the online beauty aggregator segment.
(The above story first appeared on LatestLY on Oct 27, 2021 12:25 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).