Nykaa, one of the most popular online marketplace for beauty and personal care products in India, is all set to launch its mega initial public offering (IPO) on October 28. FSN E–Commerce Ventures, which runs Nykaa and Nykaa Fashion, plan to raise a whopping Rs 5,352 crore from Nykaa IPO.
Incorporated in 2012, Nykaa is one of the most unique startups in India. Backed by private equity firm TPG and promoted by investment banker Falguni Nayar, Nykaa is among the only few profitable online retails in India. Let’s take at the key details of Nykaa Rs 5,353-crore IPO.
Nykaa IPO Dates:
Those who are willing to invest in Nykaa IPO, must know that the public offer will open for subscription on Thursday, October 28 and close on Monday, November 1. Anchor book of up to Rs 2,340 crore will open for a day on October 27.
Nykaa IPO Price:
FSN E–Commerce Ventures has fixed the price band at Rs 1,085-1,125 for its upcoming IPO. At upper price band, Nykaa will raise Rs 5,351.92 crore while at lower band, it will mop up Rs 5,184.03 crore from IPO.
Nykaa IPO Issue Size:
Nykaa IPO comprises a fresh issue worth Rs 630 crore and an offer for sale of up to 4,18,72,660 shares worth Rs 4,721.92 crore.
Nykaa Promoters Sanjay Nayar Family Trust will sell up tp 48 lakh equity shares through offer for sale. Investors TPG Growth IV SF Pte Ltd will offload 54.21 lakh equity shares while Lighthouse India Fund III will dilute 48.44 lakh equity shares respectively. Yogesh Agencies & Investments Pvt Ltd, will sell 25.38 lakh equity shares and JM Financial and Investment Consultancy Services will offload 9.14 lakh equity shares.
Nykaa IPO Quota Details:
For retail investors in FSN E-commerce Ventures IPO, the quota was fixed at 10 per cent of the net offer. For qualified institutional buyer (QIB), the quota has been fixed at 75 per cent while for non institutional investor (NII), the portion has been reserved at 15 per cent. Nykaa has reserved 2.5 lakh equity shares of the total issue size for employees.
Nykaa IPO Issue Objective:
The company will use the net proceeds from the fresh issue to invest in two subsidiaries and for establishing new retail stores. An investment of Rs 42 crore will go in certain of their subsidiaries, namely, FSN Brands and / or Nykaa Fashion for funding the set-up of new retail stores. An amount of Rs 42 crore from Nykaa IPO, will go towards capital expenditure to be incurred by the company and investment in certain of their subsidiaries, namely, Nykaa E-Retail, Nykaa Fashion and FSN Brands for funding the set-up of new warehouses. The company will also utilise Rs 156 crore towards repayment or prepayment, of outstanding borrowings availed by the company and one of their subsidiaries, namely, Nykaa E-Retail, according to the draft paper.
Nykaa IPO Grey Market Premium:
Nykaa shares were trading at a premium of Rs 670 in the grey market, according to IPO Watch data. The grey market premium of Nykaa IPO surged 60 per cent over the higher end of the issue price of Rs 1,125. On Tuesday, the shares of Nykaa was trading at Rs 1,795 apiece in the unlisted market. A soaring GMP often indicates a healthy listing of shares on the bourses.
The omni-channel beauty and consumer-care products retailer posted a net profit of Rs 61.96 crore in FY21 against a net loss of Rs 16.34 crore in FY20. The revenue from operations was Rs 2,440.89 crore in financial year 2020 which grew 38.10 per cent from the financial year 2020. The firm’s total GMV was Rs 4,045.98 crore, which rose 50.7 per cent over the financial year 2020. The EBITDA margin was recorded at 6.61 per cent in the financial year 2021.
Kotak Mahindra Capital, BofA Securities, ICICI Securities, Citibank, Morgan Stanley and JM Financial are book-running lead managers of the issue. Founder Falguni Nayar and her family will continue to own a majority stake after the IPO.