A consumer technology platform, Nykaa firm of Fsn e-commerce ventures limited, is all set to launch its IPO to raise a whopping amount of Rs 5,351.92 crores. The online platform deals in beauty and wellness products, incorporated in the year 2012. The company has a diverse portfolio of beauty, personal care, and fashion products, including their brand products manufactured by them.
The firm, till 31st March 2021, has 197,195 SKUs from 2,476 brands primarily across make-up, skincare, haircare, bath and body, fragrance, grooming appliances, personal care, and health and wellness categories. The company manufactures its owned brand beauty and personal care products through third-party manufacturers and are sold under their brand name such as “Nykaa Cosmetics”, “Nykaa Naturals” and “Kay Beauty”.
The IPO, with a price band of Rs1085-Rs1125, will open on 28th October 2021 and will close on 1st November 2021. Shares will be allotted on 8th November 2021, IPO will be listed on 11Nov,2021. The minimum investment required for a retail investor is one lot of 12 shares worth Rs13500 and a maximum one can invest in 14 lots worth Rs1,89,000.
Those selling shares under the offer for sales category include promoters Sanjay Nayar Family Trust, selling 48lakh equity shares, TPG Growth IV SF Pte Ltd will offload Rs54.21lakh shares, Lighthouse India Fund III, Limited will sales 48.44lakh shares, and some individual shareholders.
The firm plans to raise more than 5000 crores fresh issue of Rs 630 crore and an offer for sale (OFS) of 4.197 crore equity shares by the promoters and investors. The firm will not receive any proceeds from the offer for sale, while proceeds from the fresh issue will be utilized for Investment in certain Subsidiaries, namely, FSN Brands and/or Nykaa Fashion for funding the set-up of new retail stores, Capital expenditure in certain subsidiaries and Repayment or prepayment of certain borrowings.
The book-running lead managers for the issues are Kotak Mahindra Capital Company, Morgan Stanley India Company, BofA Securities India, Citigroup Global Markets India, ICICI Securities, and JM Financial. The company has seen a growth in its income from operation in past one year and has earned a profit of Rs 61.9cores for Fy2021 against a loss of Rs16crores, in Fy2020. It’s one of a kind company in its sector, there are no listed competitors, thus it is a good stock to add to a portfolio, as the grey market premium is also running high near 60%.