Nykaa, one of the most popular online marketplaces for beauty and wellness products in India, is all set to launch its initial public offering on October 28. The retailer plans to raise Rs 5,200 crore through an IPO coming up next week. According to the Economic Times, the Nykaa IPO will be open for subscription from October 28 to November 1. The anchor issue to raise up to Rs 2,340 crore will open on October 27, a day before Nykaa’s IPO.
According to the company’s draft red herring prospectus (DRHP) approved by the Securities and Exchange Board of India (SEBI), the Rs 5,200-crore Nykaa IPO will consist of a primary issue of shares worth Rs 630 crore and an offer for sale of 43.11 million shares. According to the company’s draft IPO prospectus, investors can reduce their stake in TPG, Light House India Fund, JM Financials, Yogesh Agencies, Sunil Kant Munjal, Harinderpal Singh Banga, Narottam Sekhsaria, Narottam Sekhsaria and Mala Gaonkar.
The Mumbai-based company has appointed Kotak Mahindra Capital, BofA Securities, ICICI Securities, Citibank, Morgan Stanley and JM Financial to manage its public issue.
Started in 2012 by former investment banker Falguni Nair, Nykaa is one of the most unique startups in India. It is one of the very few online retailers in India. The promoter group, Nayar, along with her husband Sanjay Nair and two children, hold over 53 per cent stake in Nayaka’s parent firm. Even after the IPO, Falguni Nair and family will continue to hold majority stake in the company.
Proceeds from the IPO will go towards – a) investment to finance the establishment of new retail stores in some of its subsidiaries, namely FSN Brands and/or Nykaa Fashions, b) capital expenditure to be incurred by the company and investment in new warehouses To finance the establishment of some of its subsidiaries, namely, Nykaa E-Retail, FSN Brands and Nykaa Fashion, c) the repayment or prepayment of outstanding borrowings received by the Company and one of its subsidiaries, Nykaa E-. Retail, d) Expenditure to increase visibility and awareness of its brands, e) General Corporate Purposes.
The omni-channel beauty and consumer-care products retailer posted a net profit of Rs 61.96 crore in FY21 as against a net loss of Rs 16.34 crore in FY10. Revenue from operations was Rs 2,440.89 crore in FY 2020 which grew by 38.10 per cent from FY 2020. The firm’s total GMV stood at Rs 4,045.98 crore, a growth of 50.7 per cent in FY20.
From mobile applications to physical stores in major cities, Nykaa’s omni-channel approach has helped it emerge as one of the most prominent names in India. As of March 31, 2021, it had a cumulative download of 43.7 million across all mobile applications. During fiscal year 2021, 86.7 percent of its online gross merchandise value (GMV) came through its mobile applications. Nykaa operated 73 physical stores in 38 cities in India, including 72 stores for beauty and personal care products and one store for fashion products.
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