The country’s first female-led unicorn – the initial public offering (IPO) of e-commerce beauty company Nykaa opens for subscription tomorrow, October 28. FSN E-Commerce Ventures operates the company’s two major verticals – Nykaa and Nykaa Fashion. The consumer technology platform includes a diverse portfolio of beauty, personal care and fashion products – including its own brand of self-made products.
Nykaa IPO: 10 Things to Know
IPO Dates: The bidding for the beauty giant’s IPO will begin on October 28 and close on November 1, 2021. The date of allotment will be based on November 8. The issue is likely to be listed on stock exchanges BSE and NSE in November 2021.
IPO Price Band: The company has fixed a price band of Rs 1,085-1,125 per share for its public offer. Bidding can be made for a minimum of 12 equity shares and thereafter up to 14 lots in multiples of 12 equity shares.
IPO Details: The IPO consists of a fresh issue of Rs 630 crore and an offer for sale (OFS) of 4.19 crore equity shares. The offer includes reservation of up to 250,000 equity shares for purchase by eligible employees.
IPO Lead Managers: BofA Securities India, Citigroup Global Markets India, ICICI Securities, JM Financial Consultants, Kotak Mahindra Capital Company and Morgan Stanley India Company
Fund raising: In the upper band, FSN E-Commerce Ventures aims to raise around Rs 5,351.92 crore through public issue, according to a company statement.
Objectives of the issue: Nykaa will use the proceeds from the IPO to finance the establishment of new retail stores with an investment of Rs 42 crore in its subsidiaries – FSN Brands and/or Nykaa Fashion.
It will use Rs 42 crore for capital expenditure and investment in subsidiaries – Nykaa E-Retail, Nykaa Fashion and FSN Brands to finance setting up of new warehouses
Rs 156 crore will be used for repayment of debt taken by the company and its subsidiary Nykaa e-retail and Rs 234 crore will be used for brand awareness and visibility.
Institute Details: Nykaa – Founded by banker turned businessman Falguni Nair, was incorporated in 2012. The company runs the beauty and personal care segment through Nykaa Vertical and Nykaa Fashion through Apparel and Accessories vertical.
The company manufactures its proprietary brands of beauty and personal care products through third party manufacturers and sold under their brand names such as Nykaa Cosmetics, Nykaa Naturals and K Beauty.
Nykaa Fashion comprises 1,434 brands and 2.8 million SKUs (stock-keeping units) with four consumer divisions – women’s, men’s, children’s and home fashion products.
It also operates an offline channel, comprising 80 stores across 40 cities in India, in three different store formats.
Promoters and Investors: Falguni Nair, Sanjay Nair, Falguni Nair Family Trust and Sanjay Nair Family Trust are the promoters of the company. He holds 45.99 per cent stake in the company. The total shareholding including the promoter group is 54.22 per cent.
Falguni Nair is the founder, executive chairman and managing director and CEO of the company. He has 26 years of experience in e-commerce, investment banking and broking.
The rest is held by public shareholders, including Steadview Capital Mauritius (3.46 per cent), Cravis Investment Partners LLC (1.14 per cent), TPG Growth IV SF Pte Ltd (3.44 per cent).
company financialNykaa: During the April-June quarter of the current financial year, Nykaa earned revenue of Rs 816.99 crore – a year-on-year growth of 183.05 per cent. Net profit during the first quarter stood at Rs 3.52 crore, with EBITDA of Rs 26.94 crore and margin of 3.30 per cent.
What Analysts Say: “On a price-to-sales basis, Nykaa is priced at 21.5 times sales per share for FY21. There are no immediate listed peers for the company, and hence, it may enjoy a reduction premium in India.
Considering the company’s market leadership status, strong topline growth, strong outlook, positive sentiment due to marquee investors and promoter group, investors looking to take exposure to the under-penetrated online cosmetics e-tailing business can invest in the issue. can consider. -Registered investment advisor INDmoney said.