Nykaa IPO To Open On October 28; Seeks Valuation Of $7.4 Bn

Nykaa plans to use the IPO proceeds to set up new retail stores, fund capital spending, and repay debts

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Nykaa's parent company FSN E-Commerce Ventures has priced its initial public offering (IPO) at INR 1,085 to INR 1,125 per share, giving it a valuation of as much as $7.11 billion. The three-day initial share sale will be open for subscription on Thursday, October 28 and conclude on November 1.

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Nykaa's IPO comprises of a fresh issue of equity shares aggregating up to INR 630 crore and offer for sale (OFS) of 41,972,660 equity shares by promoters and existing shareholders. Currently, promoter hold around 45.99 per cent of the issued, subscribed, and paid-up equity share capital of the company.

As per market observers, the grey market premium (GMP) today is strong at INR 690. Nykaa shares are expected to list on November 11 on the leading stock exchanges BSE and NSE.

Nykaa plans to use the IPO proceeds to set up new retail stores, fund capital spending and repay debts. Kotak Mahindra Capital Company, Morgan Stanley India Company, BofA Securities India, Citigroup Global Markets India, JM Financial and ICICI Securities are merchant bankers to the issue.

The company reported a net profit of INR 61.9 crore for FY21 as compared to a a loss of INR 16 crore in the previous fiscal. Its revenue from operations jumped to INR 2,441 crore from INR 1,768 crore. For the 3 months ended June 30, 2021, the total GMV was INR 1,469.6 crore.

Nykaa opened first physical store in 2014 and has 80 physical stores across 40 cities as of August 31, 2021. Their physical stores currently exist in 3 formats, Nykaa Luxe, NykaaOn Trend, and Nykaa Kiosks.

FSN E-Commerce Ventures Limited (Nykaa) was incorporated on April 24, 2012. Nykaa is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers. They have a diverse portfolio of beauty, personal care, and fashion products, including their owned brand products manufactured by them.