Nykaa IPO

Closed DRHP

IPO Subscription Details

  • Open Date 27 Oct
  • Close Date 01 Nov
  • Lot Size 12
  • IPO Size ₹ 5,351.92 Cr
  • IPO Price Range ₹ 1,085-1,125
  • Min Investment ₹ 13,020
  • Listing Exchange NSE, BSE
  • Basis of Allotment 07 Nov
  • Refunds 08 Nov
  • Credit to Demat Account 09 Nov
  • Listing Date 10 Nov

Nykaa IPO Subscription Status

Nykaa IPO Subscription Status - Day 1

Category

Subscription Status
Qualified Institutional (QIB) 3.89 Times
Non-Institutional (NII) 2.12 Times
Retail Individual 6.04 Times
Employee 1.01 Times
Total 3.77  Times

 

Nykaa IPO Subscription Details (Day by Day)

Date QIB NII Retail Employee Total
October 28, 2021 17:00 1.39x 0.60x 3.50x 0.68x 1.55x
October 29, 2021 16:00 3.89x 2.12x 6.04x 1.01x 3.77x

IPO Synopsis

Nykaa is all set to launch its Initial Public offering on October 28th. The issue will be closing on November 1st.

The total issue size of Nykaa IPO is ₹5,351.92 Crore, with the lot size of 12 equity shares at the IPO price range between ₹1,085-₹1,125.

The offer comprises of an offer for sale of 4.197 crore equity shares, the proceeds of which would go directly to the selling shareholders and the company would not receive any proceeds from the offer. The IPO also comprises fresh issue of shares worth ₹630 Crore.

Objectives of Nykka IPO

Nykaa will utilize the net proceeds for:

• Investment in subsidiaries (FSN Brands and / or Nykaa Fashion) for opening new retail stores

• Capital expenditure and investment in subsidiaries (Nykaa E-Retail, Nykaa Fashion and FSN Brands) for setting up new warehouses

• Repayment of debt

• Enhancing the visibility and awareness of its brands

• General corporate purposes

 

 

Shareholding as of August-21

Pre- IPO(%)

Promoter & Promoter Group

54.25%

Public

45.75%

 

About Nykaa

About FSN E–Commerce Ventures Limited (Nykaa)

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 ₹4,045.98 Crore, which grew 50.7% from FY20.

Financials of Nykaa 

 

Particulars (in crore)

FY19

FY20

FY21

GMV

1,650.08

2,684.92

4,045.98

Revenue from Operations

1,111.39

1,767.53

2,440.90

EBITDA

20.51

81.06

161.43

EBITDA Margin (%)

1.85

4.59

6.61

PAT

(24.54)

(16.34)

61.95

Data Source: Company RHP


Strengths

One of India’s leading lifestyle focused consumer technology platform

Nykaa is a destination of choice for consumers not only for engaging, personalized shopping experiences but also to understand latest trends in beauty, grooming and fashion in India.

According to the RedSeer Report, Nykaa is the largest Specialty Beauty and Personal Care Platform in India in terms of value of products sold in the FY21 and one of the fastest growing fashion platforms in India based on growth in GMV during FY20 and FY21.

Strong brand affinity drives increase in consumer traffic, which in turn increases the number of transactions on its platform.

 

The preferred destination for luxury and prestige products in India for consumers and brands

According to the RedSeer Report, Nykaa has the highest Average Order Value (AOV) among leading online beauty and personal care platforms in India, and it is the largest luxury beauty and personal care platform in India.

It offers a vast bouquet of leading luxury and prestige beauty and personal care brands such as Armani Beauty, Aveda, Azzaro Fragrance, Bobbi Brown, Bvlgari, Charlotte Tilbury, Clinique, Diesel Fragrance, Dior, Estee Lauder, Forest Essentials, among others. It also has a significant number of leading luxury and prestige fashion brands such as Aachho, Adisee, AMPM, Boat, Falguni & Shane Peacock, Fayon Kids, Forever New, among others on its platform.

Many global luxury brands such as Charlotte Tilbury, Huda Beauty, Mario Badescu, Pixi and Tangle Teezer has selected Nykaa to import, launch and sell their products to consumers in India.

 

Resilient, capital efficient business with a combination of strong growth and profitability

Company has a scalable business with strong growth and profitability. Its capital turnover ratio has improved from 3.1 times in FY19 to 4.2 times in FY21.

It has achieved this scale with only ₹5,777.38 million primary investments in the company as of March 31, 2021.

 

Proprietary technology stack

Company has its own proprietary platform, the Nykaa technology platform, which keeps evolving in sync with external environment. The platform architecture comprises small, maintainable, scalable building blocks following the principles of a service oriented architecture. It supports multiple business models, executes new initiatives and makes operational efficiency gains across offerings, new and existing. At the same time, the architecture retains the flexibility to customize technology requirements for individual businesses.

It also has strong data analytics capabilities, powered by scalable data engineering. Nykaa’s online platform has various differentiated technology driven features such as virtual try-on of make-up products, in-app store-in-store concepts, in-app personalized content feed, live streaming and time bound commercial offerings that prompt consumers to explore and purchase.

 

Founder-led company supported by a professional management team

Nykaa’s founder-led management team with relevant experience and complementary skill sets has driven its growth so far. Its Founder, Executive Chairperson, Managing Director and Chief Executive Officer, Falguni Nayar, started the business in 2012 and has been the driving force in developing and growing the business. She is supported by a professional management team which shares the same vision and values as hers.

 

Nykaa's Growth strategy

Continue to acquire new consumers and increase consumer loyalty

Nykaa aims to continue attracting new consumers to its platform by providing an immersive shopping experience. It keeps refining its content engine, technology capabilities and assortment, to increase engagement with every new visitor, thereby increasing its ability to acquire new consumers. It deploys the levers of “voice, video and vernacular” to improve its reach and acquire consumers. The company plans to deepen its existing consumer relationships to enhance its revenues by increasing its wallet share from such consumers. Focus on increasing purchase frequency and AOV by improving personalization, better targeting and refined data analytics.

 

Deepen and broaden our brand relationships

With an aim to offer a curated assortment of brands and products to its consumers, Nykaa will continue to invest in new brand relationships, while nurturing existing ones. It will focus on driving sales growth through improved merchandising, refined marketing and new data driven brand specific experiences. Company will ensure that its platform maintains its position as a go-to lifestyle destination for its diverse brand relationships.

 

Leveraging on art of retailing to expand into lifestyle adjacencies and launch new channels

Nykaa is looking to foray into other lifestyle adjacencies to make its platform the single largest destination for lifestyle needs of its consumers. It recently launched The Global Store, an online channel that enables Indian consumers to buy select beauty and personal care products of several prominent foreign brands from accredited overseas retailers.

 

Further expand Omni channel capabilities

Nykaa will invest further towards expansion of its physical store network to serve more consumers across the country. At the same time, it will further leverage the synergies between the offline and online channels to create a seamless journey across touchpoints. It will invest in people and infrastructure to build further capabilities for delivering an integrated online-offline shopping experience. To this end, the company commenced Nykaa PRO, a membership-based program for beauty professionals and makeup artists, providing them access to products, offers and classes, including, educational content. It is also conducting trials of SuperStore, an online channel with a separate mobile application for standalone local retailers in India to offer them select beauty and personal care products to offer to their consumers.

 

Invest in its owned brand portfolio

The success of its owned brand portfolio so far has come from identifying market gaps and building innovative products to address consumer needs by leveraging its marketing and consumer insights. Nykaa aims to increase the product offerings in its current owned brand portfolio across business verticals and add newer long-term focused brands.

 

Focused, selective international expansion as well as acquisitions and joint ventures in India

Nykaa has experience in India of localizing global trends for specific sub-markets and tastes. It aims to explore expansion selectively and prudently into international markets. It will also continue to consider acquisitions and joint ventures in India, particularly to supplement its market leading position, product offerings, channels and owned brands.

 

Risk factors

• Company derives a significant portion of its GMV from top three categories, and its business may be adversely affected if products in these categories do not perform as well as expected.

• High dependence on select brand vendors and any adverse changes to its relationships with such brand vendors can adversely affect its business, financial condition, cash flows and results of operations.

• Inability to retain existing consumers or to maintain AOV levels could have a material adverse effect on Nykaa’s business and results of operations.

• Risks associated with sales of its own brand products (which are manufactured by third party firms)

• High competitive intensity

• Any interruptions or delays in service on Nykaa’s mobile applications or websites or any undetected errors or design faults could result in limited capacity, reduced demand, processing delays, and loss of consumers, suppliers or sellers.

• Seasonality of its business affects its quarterly results and places an increased strain on its operations.

• One of the Promoters, Falguni Nayar Family Trust, has pledged certain of its equity shares in favor of a systemically important NBFC, Infina Finance Private Limited. Any exercise of such pledge by the lender or enforcement of such pledge could dilute the shareholding of the Promoters, which may adversely affect its business and future prospects.

How to apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked

Contact Details of Nykaa IPO

Contact Information

Address

FSN E–Commerce Ventures Limited

104, Vasan Udyog Bhavan,

Sun Mill Compound, Tulsi Pipe Road,

Lower Parel, Mumbai 400 013,

Maharashtra

Phone: + (91) 22 6614 9616

Email: nykaacompanysecretary@nykaa.com

Website: https://www.nykaa.com/

Nykaa IPO Register

Address

Link Intime India Private Ltd

Phone: +91-22-4918 6270

Email: nykaa.ipo@linkintime.co.in

Website: https://www.linkintime.co.in

Nykaa IPO Lead Manager

  • BofA Securities India Limited
  • Citigroup Global Markets India Private Limited
  • ICICI Securities Limited
  • JM Financial Consultants Private Limited
  • Kotak Mahindra Capital Company Limited
  • Morgan Stanley India Company Pvt Ltd