The three-day initial public offering (IPO) of FSN E-Commerce Ventures, which owns Nykaa, will open for subscription on October 28 and close on November 1. The price band of the share sale has been fixed at ₹1,085-1,125 apiece.
The IPO comprises a fresh issue of equity shares worth ₹630 crore and an offer for sale (OFS) of 41.97 million shares by promoters and existing shareholders. The offer for sale has reduced to 41.97 million shares from 43.11 million shares. Earlier, the fresh issue size was ₹525 crore.
As per market observers, Nykaa shares are available at a strong premium at ₹670. Experts expect a very good response for this IPO. The company plans to list on leading stock exchange BSE and NSE on November 11.
“As the countdown of Nykaa IPO begins, market looks passionate for the company as unlike the cash burning and loss-making startups, Nykaa is a profitable one," said Abhay Doshi, founder, UnlistedArena.com. As per Doshi, promoters quality, profitability & growth and fancy for startup IPOs will be the driving force for Nykaa IPO.
Nykaa will allocate a part of the funds for the establishment of new retail stores. The proceeds will also be used for capital expenditure and repayment of debt and enhance the visibility and awareness of its brands.
FSN E-Commerce Ventures Ltd (Nykaa), founded in 2012 by Falguni Nayar, is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers.
It is a leading multi-brand beauty & personal care platform in India and has been ramping up its presence in the fashion space. In 2018, the company expanded into fashion under Nykaa Fashion, a curated & managed marketplace. The company also has other offerings like Nykaa Man, The Global Store (foreign brands) etc.
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.
