Nykaa will launch its three-day initial public offering (IPO) on October 28. The company will raise an amount of Rs 5,200 crore through this.
Nykaa IPO: Nykaa, an online retailer of cosmetics and personal care products, will launch its three-day initial public offering (IPO) on October 28. According to a report in Economics Times, the company will raise an amount of Rs 5,200 crore through this. ET has been told by people with knowledge of the matter.
IPO to close on 1st November
According to the report, a person told that on Wednesday, October 27, anchor placement of up to Rs 2,340 crore will open. And the IPO will close on Monday, November 1. The Rs 5,200 crore Nykaa IPO consists of a primary issue of Rs 630 crore shares and an offer for sale in which existing shareholders will offload up to 43.11 million shares. This information is according to the draft Red Hering Prospectus (DRHP) of the company approved by the Securities and Exchange Board of India (SEBI).
Investors who are expected to sell their stake include TPG, Light House India Fund, JM Financial, Yogesh Agencies, Sunil Kant Munjal, Harinderpal Singh Banga, Narotam Sekhsaria and Mala Gaonkar. Promoter Sanjay Nair Family Trust will sell 4.8 million shares. Founder Falguni Nair and his family will continue to have ownership rights even after the IPO. Currently, he holds over 53 per cent stake in Nykaa’s parent company FSN E-Commerce Ventures.
Price band will be decided next week
Another person who knew the details related to Nykaa’s IPO told ET that the company is looking to raise a valuation of around $7.4 billion in the IPO. According to this person, the price band will be decided by the beginning of next week. Kotak Mahindra Capital, BofA Securities, ICICI Securities, Citibank, Morgan Stanley and JM Financial are the book running lead managers of the issue.
Nykaa is one of the few less profitable etailers in India. The company had a net profit of Rs 61.96 crore in the quarter ending March 31. The company had to face a loss of Rs 16.34 crore in the year-ago period. Revenue has grown by 38 per cent year-on-year to Rs 2,453 crore in FY21. The company had earlier said that it would use the Rs 130 crore proceeds from the IPO to repay its debt. And it will market the brands worth Rs 200 crores.
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