Nykaa operator FSN E-Commerce Ventures IPO includes fresh issue of equity shares valuing Rs 630 crore and OFS (offer for sale) of about 41,972,660 equity shares by promoter and existing shareholders.
Beauty and fashion establishment Nykaa’s operator FSN E-Commerce Ventures Ltd said on October 27, 2021, that it has raised Rs 2,396 crore from anchor investors ahead of its IPO (Initial Public Offering).
Nykaa’s IPO will open for subscription on October 28, 2021.
The corporation will allot bulk 21,296,397 equity shares to anchor investors at Rs 1,125 apiece, which will amount to Rs 2,395.84 crore.
The anchor investors participating in the allocated shares subscription comprise BlackRock Global Fund, Nomura, Monetary Authority of Singapore, Tiger Global Investments Funds, Canada Pension Plan Investment Board, Fidelity Funds, Government of Singapore, T Rowe Price, Goldman Sachs and Morgan Stanley.
Apart from institutional investors, shares have been additionally allotted to domestic funds consisting of Aditya Birla Sun Life Mutual Fund, SBI Mutual Fund, HDFC Mutual Fund, Axis Mutual Fund, UTI Mutual Fund, Tata Mutual Fund and Sundaram Mutual Fund.
Nykaa operator FSN E-Commerce Ventures IPO includes fresh issue of equity shares valuing Rs 630 crore and OFS (offer for sale) of about 41,972,660 equity shares by promoter and existing shareholders.
Selling shareholders in the OFS include TPG Growth IV SF Pte Ltd, Lighthouse India III Employee Trust, J M Financial and Investment Consultancy Services, Lighthouse India Fund III, Yogesh Agencies & Investments, and some other individual shareholders. Promoter Sanjay Nayar Family Trust is also selling shares in the OFS.
The public issue will close for public subscription on November 1, 2020.
The price band is fixed at Rs 1,085 to Rs 1,125 per share. At the upper end of it, the initial sale of shares is anticipated to raise Rs 5,352 crore.
Nykaa will use the proceeds from the IPO for expanding the business and giving it more exposure in the market. It will set up new retail stores and warehouses. The company will also utilize the proceeds in the repayment of debts to cut down the interest costs and elevate its profitability.
The beauty and fashion establishment will additionally make use of the proceeds by investing it in marketing and promotional activities. It will help the company pivot its focus on strengthening its 13 owned brands comprising Nykaa Naturals, Nykaa Cosmetics, Kay Beauty, etc. while also setting up as well as promoting new brands.
Co-founder of True Beacon and Zerodha, Nikhil Kamath shared that “Nykaa has had quite a journey!” He said the reason is that the establishment has set organization processes as well as a standardized protocol in the seed stage when most startups do not even consider giving it a thought. For example, the company managed its inventory in order by joining hands with suppliers exclusively.
Founded in 2012 by Falguni Nayar, FSN E-Commerce Ventures Ltd is a consumer-focused technology platform which delivers a lifestyle retail experience to its consumers. The corporation possesses a diverse portfolio of beauty, fashion and wellness products which also includes its in-house brands under its business verticals Nykaa and Nykaa Fashion.
(Source: PTI)
