Nykaa, a well-renowned Online market for beauty products founded in 2012 by Falguni Nayar, is set to open its public subscription on October 28. The offering will terminate on November 1 as per the red herring prospectus (RHP).
The shares in this initial public offering are set to bring out an amalgamation of New stock and Sale offers. With the initial shares being priced at Rs. 1085-1125 apiece, the company aims to valuation at $7.4 billion, as approved by the Securities and Exchange Board of India (SEBI).
Participating shareholders include TPG Growth IV SF Pte Ltd., Lighthouse India Fund III, Limited, Lighthouse India III Employee Trust, and some independent holders.
Figures till March 2021 state that 86.7% of the Gross Merchandise value earned have solely been based on the Online market. Downloads of 43.7 million on mobile applications have been the primary source.
A profit of Rs. 61.9 crore for FY21 was reported, whereas the former fiscals encountered a loss of Rs. 16 crore. Therefore, Some prior debts will also be cleared off from the earnings of this setup to dive deep into a profitable network of business.
Founder Falguni Nayar and her family presently hold more than a 53% stake in FS E-Commerce Ventures. After this IPO, her position as the majority stakeholder shall stay intact.
The gains earned through Nykaa IPO are set to further expand the brand’s image by setting up new retail outlets and warehouses.
Other 13 sub-brands under FSN E-Commerce Ventures are likely to benefit from this offering as well.
This IPO aims to consolidate the hold and establishment of Nykaa Cosmetics, Nykaa Naturals and Kay Beauty and promote newer brands.
What’s your opinion on this? Are you going to be Naykaa’s potential investor in the coming days, or is this the right move from Nykaa? Comment your opinion below; we’ll be more than happy to hear what you have to say.
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