scorecardNykaa may launch its IPO next week to raise a little over ₹5,000 crore
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Nykaa may launch its IPO next week to raise a little over ₹5,000 crore

Nykaa may launch its IPO next week to raise a little over ₹5,000 crore
Business4 min read
  • The anchor placement of up to ₹2,340 crore will open up a day in advance.
  • Nykaa’s IPO would consist of a fresh issue of equity shares worth ₹630 crore.
  • A total of 17 investors — both institutional and individual — will be shelling out a part of their shareholdings with Nykaa’s public issue.
Fashion and beauty ecommerce platform Nykaa will launch its three-day initial public offering (IPO) on October 28 to raise as much as ₹5,200 crore.

The anchor placement of up to ₹2,340 crore will open up a day in advance, on October 27.

The IPO will go on till November 1, 2021, the company red herring prospectus (RHP) has revealed.

The price band has been fixed at ₹1,085-₹1,125 per equity share, as per a Moneycontrol report. However, Nykaa's RHP doesn't reveal the price band.

The company has not revealed the amount it intends to raise in its red herring prospectus, which is the preliminary paperwork for public issue. Economic Times reported the ₹5,300 crore IPO size citing

Nykaa’s IPO would consist of a fresh issue of equity shares worth ₹630 crore and existing investors in the company ⁠will sell part of their stakes amounting to 4.3 crore equity shares. The company gots Securities and Exchange Board of India’s approval last week.

According to sources quoted by The Economic Times, the company will seek a valuation of $7 billion with this public issue. This is a nearly five-fold jump from the last reported $1.2 billion valuation.

A total of 17 investors — both institutional and individual — will be shelling out a part of their shareholdings with Nykaa’s public issue.
Shareholders

Offered shares

Sanjay Nayar Family Trust

Up to 4,800,000

TPG Growth IV SF Pte. Ltd

Up to 5,421,510

Lighthouse India Fund III, Limited

Up to 4,844,620

Lighthouse India III Employee Trust

Up to 51,530

Yogesh Agencies & Investments Private Limited

Up to 2,538,450

J M Financial and Investment Consultancy Services Private Limited

Up to 914,000


Nykaa, in its DRHP, has revealed that the net processed would be used for five purposes.

Particulars

Amount from net proceeds

Total investment to be made

Investment in subsidiaries like FSN Brands or Nykaa Fashion to set up retail stores

₹35 crore

₹53.9 crore

Capital expenditure incurred by the company and fund setting up on new warehouses

₹35 crore

₹92.4 crore

Repayment of outstanding borrowing

₹130 crore

N./A

Expenditure on enhancing brand visibility and awareness

₹200 crore

₹200 crore

General corporate purpose*

N/A

N/A

*The amount utilised for general corporate purposes shall not exceed 25% of the net proceeds

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