Exclusive | Nykaa may be first profitable startup eyeing IPO, around half a billion dollar issuance to be largely secondary

Nykaa E-Retail Pvt. (PC- Nykaa Website)

Beauty platform company Nykaa is likely to be the first profitable company from the startup space which has put its IPO plans on the fast track. Sources tell Moneycontrol that Nykaa will file its DRHP with the market regulator SEBI in the next few days.

Sources suggest that Nykaa is eyeing a valuation of approx. $4-5 billion in its proposed IPO but a lot depends on market condition, investor appetite and global peer comparison. Nykaa’s public offering could be around half a billion dollars which is likely to be largely secondary sale of shares. TPG Growth, Steadview Capital, Fidelity, Hero Group’s Sunil Kant Munjal are likely to sell their shares as part of the IPO.

A small portion of the IPO issuance is expected to be primary, sources suggest around 70-75 million dollars as the company is profitable and does not need cash to grow, a source with direct knowledge suggested.

Sources tell Moneycontrol that Nykaa will be promoter-owned post-listing as Falguni Nayar & family will own a controlling stake of over 51%.

Moneycontrol reached out to Nykaa on their IPO plans and did not get any comment from the company.