Nykaa, owned by FSN E-Commerce Ventures Ltd, will launch its IPO on Thursday, 28 October 2021. The beauty startup public issue comprises a fresh issue of shares worth Rs 630 crore and an offer-for-sale (OFS) of up to 4.19 crore equity shares by the selling shareholders. The issue will close for subscription on 1 November 2021. The offer includes a reservation of up to 2.5 lakh equity shares for eligible employees. The company, in its red herring prospectus (RHP), said that it may offer a discount of up to 10 per cent of the offer price to the eligible employees bidding in the employee reservation portion. The global coordinators and book running lead managers to the issue include Kotak Mahindra Capital Company, Morgan Stanley India Company, BofA Securities India, Citigroup Global Markets India, ICICI Securities, and JM Financial. Link Intime India will be the registrar to the issue.
There are no listed companies in India that engage in a business similar to that of Nykaa. This new-age internet company’s selling shareholders include promoters Sanjay Nayar Family Trust, and investors such as TPG Growth IV, JM Financial and Investment Consultancy Services, Sunil Kant Munjal, Harindarpal Singh Banga jointly with Indra Banga and others. The promoters of the company are Falguni Nayar, Sanjay Nayar, Falguni Nayar Family Trust and Sanjay Nayar Family Trust. The weighted average return on net worth for the last three fiscals stood at 2.82 per cent.
In the grey market on Friday, Nykaa shares were quoting at a premium of Rs 670, as against the tentative price of Rs 1,125-1,150 per share, according to the people who deal in unlisted shares of the companies. In the Financial Year 2021, Nykaa’s GMV was Rs 4,046 crore with revenue from operations of Rs 2,441 crore and a 6.61 per cent EBITDA margin. The company’s revenue from operations grew 38.10% in the Financial Year 2021 as compared to the Financial Year 2020, despite the adverse impact of COVID-19 on it’s business. The profit for the year in the financial year 2021 was Rs 62 crore, as compared to a restated loss of Rs 16 crore for the financial year 2020. For the three months ended June 30, 2021, Nykaa’s GMV was Rs 1,470 crore with revenue from operations of Rs 8,170 crore and a 3.30% EBITDA margin.
On 28 September 2021, Nykaa acquired 51 per cent of the outstanding equity shares of Dot & Key Wellness Private Limited through the subscription and purchase of equity shares. The company businesses primarily through arrangements with beauty, personal care and fashion brands, delivery companies, manufacturers, distributors and other vendors, including suppliers of packaging material. As of 31 August 2021, Nykaa operated 80 physical stores (comprising 79 stores for beauty and personal care products and one store for fashion products) in 40 cities of India across three formats (Nykaa Luxe, Nykaa On-Trend, and Nykaa Kiosks).
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