E-commerce beauty and fashion startup Nykaa is all set to launch its IPO (Initial Public Offering) on October 28, 2021, which will close its subscription on November 1, 2021. The company has reportedly planned to raise up to Rs 5,200 crore through the upcoming IPO.
The startup has elevated the value of its fresh issue to Rs 630 crore from Rs 525 crore. The other changes in the IPO include the reduction in the number of shares in OFS (offer for sale) to around 41.97 million shares from 43.11 million shares.
Nykaa will be listed on November 11, 2021.
The online beauty and fashion platform had received a nod from SEBI (Securities and Exchange Board of India) on October 14, 2021, for the IPO, which the company had filed for in August in the same year. The sketched out IPO size was estimated to be Rs 4,000 crore, of which Rs 525 crore was decided to be raised via fresh equity issue.
In the company’s offer-for-sale, investors who have planned to sell their shares comprise Sanjay Nayar Family Trust, Lighthouse India Fund, TPG Growth IV SF Pte, JM Financial and Investment Consultancy Services, Yogesh Agencies and Investments, and more.
The lead managers of the forthcoming issue include Kotak Mahindra Capital, Bofa Securities, ICICI Securities, Morgan Stanley India, JM Financial and Citigroup Global Markets India.
Nykaa has planned to use IPO proceeds of about Rs 200 crore to expand the brand exposure in the market for more visibility of the company’s brands. The startup will also augment its operations to increase its offline presence in the Indian marketplace, for which Nykaa is all set to induce the investment of Rs 35 crore in setting up new retail stores. Additional Rs 35 crore and Rs 130 crore from the issue is expected to be utilized in capital expenditure as well as repayment of financial debt.
Nykaa has reported considerable growth as its online space and opportunity in the country is attracting various players from different categories, offering one of the most engaging content in its product portfolio. The online beauty startup is presently the only unicorn making profit which will be listed publicly on November 11, 2021.
Former Investment Banker Falguni Nayar- led startup is currently emerging as a spearheading destination for beauty and fashion-related products. It sells from over 1,500 brands lined in its portfolio. The startup also offers products from its internal brands which consist of Nykaa Cosmetics, Kay Beauty, Nykaa Naturals, and more.