Nykaa IPO details: All you need to know before subscribing

FSN E-Commerce Ventures, the parent company of India’s biggest cosmetics etailer Nykaa, will launch its initial public offering (IPO) on October 28 to raise as much as Rs 5,352 crore.

If all goes to plan, Nykaa will be the second Indian startup to go public this year after Zomato, which drew huge interest for its trailblazing IPO in July. Others in line to list on the stock exchanges this year are Paytm, PolicyBazaar and Mobikwik.

Here is everything you need to know about the Nykaa IPO

An anchor placement of up to Rs 2,340 crore will open on Wednesday (October 27), and the IPO will close on Monday, November 1

Shares in the Nykaa IPO, which will be a mix of fresh stock and an offer for sale, will be issued in a price band of Rs 1,085-1,125 apiece to raise as much as Rs 5,352 crore at a valuation of $7.1 billion.

While the primary issue is worth as much as Rs 630 crore, the offer for sale (OFS) will see existing shareholders offload up to 41.97 million shares, according to the draft red herring prospectus (DRHP) approved by the Securities and Exchange Board of India (Sebi).

Investors who are likely to sell stake include TPG, Light House India Fund, JM Financial, Yogesh Agencies, Sunil Kant Munjal, Harindarpal Singh Banga, Narotam Sekhsaria, and Mala Gaonkar.

Promoter Sanjay Nayar Family Trust will sell 4.8 million shares.

Founder Falguni Nayar and her family will continue to own a majority stake after the IPO. They currently hold more than 53% in FSN E-Commerce Ventures.

Nykaa is among a few profitable etailers in India. It reported a net profit of Rs 61.96 crore in the fiscal ended March 31, compared to a net loss of Rs 16.34 crore in the year-ago period.

Revenue grew 38% year-on-year to Rs 2,453 crore in FY21. The company had earlier said it would use Rs 130 crore from the IPO proceeds to repay its debt and Rs 200 crore to market its brands.

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