Nykaa is one of the most unique startups to be hitting the public markets this year. (Image: Shutterstock)
Securities and Exchange Board of India (SEBI) has given its approval for Nykaa’s Rs 4,000 crore initial public offering (IPO), sources told CNBC-TV18 on October 14.
The online beauty retail startup is likely to be valued at over Rs 40,000 crore, it added.
Nykaa is looking to raise Rs 525 crore via fresh issuance of equity. Besides the fresh issue, which will be primary shares, the company is also looking at secondary share sale of 43.1 million shares.
Most of the Rs 4,000 crore raised from the IPO will be used to pay existing investors selling their stakes. Sanjay Nayar, TPG, Lighthouse and Sunil Munjal are among the selling shareholders.
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Nykaa is one of the most unique startups to be hitting the public markets in India. For one, it has been one of the only profitable unicorns going public. It is also one of India's only new-age firms where even after a billion dollar valuation, its promoter group owns more than half the company.
The company was founded in 2012 by former investment banker Falguni Nayar and is a leading destination for beauty products, armed with its own chain of physical outlets and ($250 million) in revenue in fiscal 2020. Its investors include TPG and Fidelity.
Nykaa now boasts of over 1,500 brands in its portfolio, including leading luxury labels like Bobbi Brown, L’Occitane and Estee Lauder, and it has even opened 68 brick and mortar stores in the country. Nykaa posted revenue of Rs 1,860 crore in FY20, making it possibly the only profitable unicorn that is going public.
Kotak Mahindra Capital, Bofa Securities, Citi, JM Financial, Morgan Stanley and ICICI Securities are the i-bankers working on the issue, a source told Moneycontrol in August.