Get All Access for $5/mo

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

By Prabhjeet Bhatla

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Unsplash

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.

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.

Prabhjeet Bhatla

Former Staff

News and Trends

"45% of All Ongoing Hydropower Projects in India are Ours": Patel Engineering

Patel Engineering reported a turnover of INR 4,400 crore in the last fiscal year, with a projected 10 per cent growth for the current year.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Living

70% of Small Business Owners Experience Monthly Burnout. Follow These 3 Rules to Avoid the Same Fate.

Here are three guidelines to help entrepreneurs achieve balance, growth and success in both their professional and personal endeavors.

Science & Technology

5 Rule-Bending AI Hacks to Make Your Mornings More Productive and Profitable

By 2025, AI will transform productivity by streamlining workflows and cutting costs. Major companies like Microsoft, Google, and OpenAI are leading the way, advancing AI into "Phase 3," where tools act as digital assistants. Discover 5 AI hacks to boost efficiency and redefine your daily routine.