Nykaa's IPO will be a watershed moment for Internet IPOs and will inspire a generation of women entrepreneurs.
FSN E–Commerce Ventures, a digital native consumer technology platform that runs Nykaa and Nykaa Fashion, has decided to launch its initial public offering (IPO) on October 28. The offer will close on November 1.
The company plans to raise Rs 5,351.92 crore through its public issue at the upper price band. The price band has been fixed at Rs 1,085-1,125 a share. FSN E–Commerce Ventures is promoted by Falguni Nayar and backed by private equity firm TPG.
Bids can be made for a minimum of 12 shares and in multiples of 12 shares thereafter. Retail investors can invest a minimum of Rs 13,500 for one lot and a maximum of Rs 1,89,000 for 14 lots
The share allotment will be finalised on November 8. Refunds will be given on November 9 investors will get shares in their demat accounts on November 10. Trading will commence from November 11.
The IPO comprises a fresh issue of Rs 630 crore and an offer for sale (OFS) of 4.197 crore equity shares by the promoters and investors.
While the Sanjay Nayar Family Trust will sell up to 48 lakh equity shares, investors TPG Growth IV SF Pte Ltd will offload over 54.21 lakh shares and Lighthouse India Fund III will sell 48.44 lakh shares through the OFS.
Yogesh Agencies & Investments Private Ltd will offload over 25.38 lakh shares, and JM Financial and Investment Consultancy Services 9.14 lakh shares. There are 16 shareholders who are sellers.
Lighthouse India III Employee Trust, Sunil Kant Munjal, Harindarpal Singh Banga, along with Indra Banga, Narotam Sekhsaria, Rishabh Mariwala, Jeenoo Khakhar, along with Kanika Khakhar and Isha Khakhar, Michael Carlos, Samina Hamied, Sanjay Maliah, Vikram Sud, and Karan Swani are among the sellers.
Up to 2.5 lakh equity shares are set aside for employees.
Nykaa will utilise the net proceeds for investment in subsidiaries (FSN Brands and / or Nykaa Fashion). It will be used for opening retail stores, for capital expenditure and investment in subsidiaries (Nykaa E-Retail, Nykaa Fashion and FSN Brands), new warehouses, and repayment of debt.
The proceeds will also be utilised to enhance brand visibility and awareness, besides general corporate purposes.
Incorporated in 2012, FSN E–Commerce Ventures is a digital native consumer technology platform, delivering a content-led, lifestyle retail experience. It has a diverse portfolio of beauty, personal care and fashion products, including own products. The company operates its beauty and personal care through the Nykaa vertical, and apparel and accessories via the Nykaa Fashion channel.
It also runs offline channels, comprising 80 stores across 40 cities in India over three different formats, as of August 2021.
As of August 2021, it offered approximately 3.1 million SKUs (stock-keeping units) from 4,078 national and international brands across business verticals. In FY21, its total GMV (gross merchandising value) was at Rs 4,045.98 crore, which grew 50.7 percent from FY20.
The main promoters Falguni Nayar Family Trust and Sanjay Nayar Family Trust currently hold 45.99 percent equity stake in the company. Public shareholders have 45.78 percent shareholding in the company. They include Steadview Capital Mauritius, TPG Growth IV SF, Lighthouse India Fund III, Fidelity Securities Fund, and Kravis Investment Partners LLC.
Kotak Mahindra Capital Company, Morgan Stanley India Company, BofA Securities India, Citigroup Global Markets India, ICICI Securities, and JM Financial are the book-running lead managers.