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Nykaa IPO to open on Oct 28. Check price band, other details
The Nykaa IPO, which will conclude on November 1, comprises of equity shares aggregating up to ₹630 crore (fresh issue) and an offer for sale of up to 41,972,660 equity shares being offered by the selling shareholders (offer for sale or OFS), a statement said.
FSN E-Commerce Ventures Ltd, the parent company of online beauty e-commerce platform Nykaa, is going to launch its initial public offering (IPO) on Thursday, October 28. The company said that it has fixed a price band of Rs1,085-1,125 per share for its IPO and is going to raise ₹5,352 crore at a valuation of $7.1 billion.
The Nykaa IPO, which will conclude on November 1, comprises of equity shares aggregating up to ₹630 crore (fresh issue) and an offer for sale of up to 41,972,660 equity shares being offered by the selling shareholders (offer for sale or OFS), the company said in a statement.
According to the statement, bids can be made for a minimum of 12 equity shares and in multiples of 12 equity shares thereafter. The offer includes a reservation of up to 250,000 equity shares for purchase by eligible employees, it added.
Reports have said that the company is seeking a valuation of over $7 billion and existing investors like such as TPG Growth IV SF Pte, Lighthouse India Fund and others are expected to offload their shares in the IPO. Promoters, including founder and CMD Falguni Nayar, currently own more than 50 per cent share in the company.
"We are one of India's leading consumer technology platform... (with) more than 3 million SKUs from 4,000-plus brands and 13 million cumulative transacting consumer base...We do believe that there is a significant headroom available for growth at each level across India's digital use case funnel," Nayar said in a briefing.
While the access to internet is very high at 660-690 million consumers, Nayar said that the online shopper base is still at just 150-180 million.
"This, we believe, is likely to go up over the next five years, with penetration reaching 24-28 per cent of the consumer base...beauty (segment) which is a $16 billion business is likely to grow to a $28 billion business going forward, and fashion which is a $54 billion business today is likely to become $124 billion business by 2025," she stated.
The company, founded in 2012, proposes to use the proceeds from the IPO towards acquiring and retaining customers by enhancing the visibility and awareness of its brands, repayment of outstanding borrowings availed by the company and one of its subsidiaries, setting up new retail stores and setting up new warehouses.
Nykaa posted a net profit of ₹61.9 crore in FY21 compared to a loss of ₹16.3 crore in the previous year. Its total income stood at ₹2,452.6 crore in FY21 as against ₹1,777.8 crore in FY20.
(With agency inputs)
