Nykaa IPO - 7 Things to know before applying for IPO

Nykaa IPO - 7 Things to know before applying for IPO

by 5paisa Research Team Last Updated: Dec 09, 2022 - 12:52 am 50.5k Views
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FSN Ecommerce Ventures Ltd, the company that owns and operates the Nykaa brand, has announced the dates for its proposed IPO.

Here are 7 things you need to know about the Nykaa IPO

✔️   The Nykaa IPO will open for subscription on 28-Oct and close for subscription on 01-Nov. The basis of allotment is expected to be done by 08-Nov while shares are expected to be credited to the demat accounts of allottees by 10-Nov. Nykaa IPO is slated to list on 11th November.

Check : Nykaa IPO Note

✔️    The IPO will be a mix of fresh issue and an OFS. The fresh issue will be worth Rs.630 crore while the OFS will be for a total of 419.73 lakh shares. While the price band is yet to be announced, the market is expecting a price band of Rs.1100 – Rs.1,125. That would peg the OFS at the upper end at around Rs.4,720 crore and the overall size of the IPO at approximately Rs.5,350 crore. This is a market estimate.

✔️    Nykaa was promoted by former Kotak investing banking head honcho, Falguni Nayar. The promoter and the family trusts will also participate in the OFS, but will continue to remain majority shareholders post the IPO. Nykaa offers a digital platform to sell beauty and fashion care products as well as apparel and accessories of marquee brands.

✔️    Nykaa is broadly structured under 2 verticals viz. Nykaa and Nykaa Fashion. The Nykaa vertical comprises the beauty and personal care products and has close to 1.98 lakh SKUs (stock keeping units) from across 2,476 brands. The Nykaa fashion vertical sells apparel and accessories and has 1.8 million SKUs across 1,350 brands.

✔️    The IPO proceeds will be used to invest in subsidiary, FSN Brands, as well as to set up new retail stores. It will also allocate part of the fresh proceeds towards setting up new warehouses. The biggest allocation will include Rs.156 crore for repayment of loans and Rs.234 crore towards investing in building brand visibility and brand awareness.

✔️    Nykaa prides itself in being the rare profit making digital play. For FY21, Nykaa made net profits of Rs.62 crore on revenues of Rs.2,453 crore. For the Jun-21 quarter, Nykaa reported net profits of Rs.3.52 crore on revenues of Rs.822 crore.

✔️    Nykaa, in a nutshell, intends to offer the perfect omnichannel experience. It will offer online and offline sales. It will also offer proprietary and external brands. It will offer pull and push experience for customers.
Nykaa is the biggest digital IPO after Zomato IPO and will test the institutional and retail appetite. QIBs have 75% allocation in the IPO with retail having just 10%.


Nykaa IPO - Details Explained


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Also Read:-

Upcoming IPOs in 2021

List of Upcoming IPOs in October 2021

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