Nykaa IPO: Check price band, GMP and other key details

The much-anticipated preliminary public providing (IPO) FSN E-Commerce Ventures Limited, the mother or father firm of on-line magnificence and life-style merchandise aggregator Nykaa, will open for subscription on October 28.

A number of buzz has been seen out there relating to Nykaa’s public issue as it is going to be the second Indian tech startup that can go public after on-line meals supply big Zomato.

Read | 2 IPOs to open for subscription this week: All you need to know

NYKAA IPO SIZE, PRICE BAND, KEY DATES, GMP & OTHER KEY DETAILS

The firm’s public difficulty will open for subscription on October 28 and buyers will be capable to place their bids until November 1. Anchor subscriptions, if any, will open a day earlier than the general public difficulty opens for subscription.

The firm plans to boost as a lot as Rs 5,352 crore from the IPO and will likely be one of many largest in 2021 to this point. It could also be famous that FSN Ventures is backed by non-public fairness agency TPG and promoted by Falguni Nayar.

The Nykaa IPO contains a contemporary difficulty of fairness shares value Rs 630 crore and a proposal on the market (OFS) of 4.19 crore fairness shares by present shareholders together with promoters and marquee buyers.

Decoded: Why so many companies are going public in 2021

It is value mentioning that promoter Sanjay Nayar Family Trust will promote as much as 48 lakh fairness shares by way of OFS. However, Falguni Nayar and her household will proceed to personal a majority stake after the IPO. Key investor TPG Growth IV SF Pte Ltd and Lighthouse India Fund III will promote over 54 lakh fairness shares and 48 lakh fairness shares, respectively.

Some other buyers are additionally anticipated to dump shares by way of OFS. Meanwhile, the corporate has reserved 2.5 lakh fairness shares of the entire difficulty measurement for workers.

The price band of the Nykaa IPO has been mounted at Rs 1,085-Rs 1,125 per fairness share. One lot will encompass 12 shares and is anticipated to value Rs 13,500. The most lot measurement (14) will encompass 168 shares and is anticipated to value Rs 1,89,000.

At least 10 per cent of the problem has been reserved for retail buyers, whereas 75 per cent has been reserved for certified institutional patrons and the remainder 15 per cent for non-institutional buyers.

Nykaa shares can be found on the gray market at a premium of over Rs 600, in response to market observers quoted in a livemint.com report. This signifies that the IPO is more likely to obtain an excellent response. The shares of the corporate are more likely to be listed on the Bombay Stock Exchange and the National Stock Exchange on November 11. The allotment of shares is more likely to be finalised on November 8.

OBJECTIVES OF NYKAA IPO

The proceeds from the problem will likely be utilized by the corporate to put money into its vogue and other manufacturers. It additionally plans to take a position and arrange new retail shops. The firm additionally plans to utilise the raised cash for capital expenditure and funding in subsidiaries.

The generated funds can even be used for compensation of debt availed by the corporate and its subsidiary Nykaa E-Retail, in addition to enhancing model consciousness and visibility.

NYKAA DETAILS & FINANCIALS

FSN E-Commerce, the mother or father agency of Nykaa, was integrated in 2012 by Falguni Nayar. It gives a various vary of merchandise by way of its on-line and offline platforms and is without doubt one of the few worthwhile on-line magnificence, private care and vogue merchandise aggregators within the nation.

While the majority of its enterprise revolves round on-line orders and supply, it additionally operates offline with 80 shops throughout roughly 40 cities within the nation. As of August 2021, Nykaa Fashion comprised 1,434 manufacturers and 2.8 million stock-keeping models (SKUs) with vogue merchandise for ladies, males, children and residence.

Nykaa posted a internet revenue of over Rs 61 crore in FY21 in comparison with a lack of over Rs 16 crore in FY20. Its income from operations has recovered as financial actions resumed after the pandemic. It could also be famous that income grew 38 per cent year-on-year to Rs 2,453 crore in FY21.

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