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Nykaa files for IPO, plans to raise $500 million
Nykaa's move to release an IPO comes after food-delivery firm Zomato's stellar debut last month. Berkshire Hathaway Inc-backed Paytm, hospitality company Oyo Hotels and ride-hailing firm Ola, both backed by SoftBank, are among other Indian startups set to enter markets.
Online cosmetics retailer Nykaa has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). The e-commerce beauty company plans to raise $500 million through its IPO.
Backed by private equity firm TPG, Nykaa sells cosmetics, grooming products and clothes. The company is based in Mumbai.
The IPO comprises an offer for sale of 4,31,11,670 equity shares by the selling shareholders, according to the draft red herring prospectus (DRHP).
Those selling shares include TPG Growth IV SF Pte Ltd, Lighthouse India Fund III, Limited, Lighthouse India III Employee Trust, Yogesh Agencies and Investments and JM Financial and Investment Consultancy Services and Sanjay Nayar Family Trust.
Morgan Stanley, BofA Securities and Citigroup are among the lead book running managers of the IPO.
Proceeds of the fresh issue will be used towards investment in certain subsidiaries to set-up new retail store, repayment of debt, and to enhance the visibility and awareness of its brands .
Founded in 2012, the company is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers. The company has a diverse portfolio of beauty, personal care and fashion products.
As of March 31, the company had cumulative downloads of 43.7 million across all its mobile applications. It also has an offline presence comprising 73 physical stores across 38 cities in India.
Nykaa's move to release an IPO comes after food-delivery firm Zomato's stellar debut last month. Berkshire Hathaway Inc-backed Paytm, hospitality company Oyo Hotels and ride-hailing firm Ola, both backed by SoftBank, are among other Indian startups set to enter markets.
