Nykaa gets SEBI’s approval for its ₹4,000 crore IPO; raises fresh issue size by over ₹100 crore
BI India, Canva
Nykaawas planning to raise ₹525 crore through a fresh issue initially.
- The fresh issue offer has now been raised to ₹630 crore.
- It would use the fresh capital to make further investments in its subsidiaries, repay loans and enhance its brand’s visibility.
The development was first reported by CNBC-TV18 citing sources.
Business Insider has reached out to Nykaa seeking further clarification on the same.
AdvertisementFashion and beauty ecommerce platform Nykaa had filed its draft red herring prospectus (DRHP) in August 2021. Notably, the document did not mention the actual size of the IPO, but it is estimated to be ₹4,000 crore.
The document revealed that the IPO would consist of a fresh issue of equity shares worth ₹525 crore and existing investors in the company — whose last reported valuation was $2.3 billion — will sell part of their stakes amounting to 4.3 crore equity shares.
The nine-year-old startup has today (October 14) revised its DRHP to increase the size of fresh issue by ₹105 crore. The company now plans to raise ₹630 crore through fresh issue of equity shares.
Nykaa is expected to raise this capital at a valuation of $4.5 billion. It is also one of the few profitable startups to hit the public market this year.
The Mumbai-based company — founded by 55-year old Falguni Nayar who has a net worth of ₹5,410 crore ($728 million), according to Forbes — would use the fresh capital to make further investments in its subsidiaries, repay loans and enhance its brand’s visibility.
A part of the fund will also be used for capital expenditures incurred by the company and fund setting up of new warehouses.
AdvertisementNykaa plans to set up new retail stores, with an built-up area of approximately 75,000 square feet, over the next three financial years. It already has about 73 physical stores across the country.
Urban Company has announced a 12-point agenda to improve partner earnings after over 100 workers protest
ITC surges 5% on reports of potential investment from an e-commerce titan
India’s techies are leaving IT firms in hordes —Here’s why
Popular on BI
- India’s techies are leaving IT firms in hordes — Here’s why
- After a near-record run at the top of Netflix's US Top 10 list, pop culture smash 'Squid Game' has been bumped by another show
- Elon Musk’s puppy, a new strategy to burn tokens, and altcoins playing catch up — the perfect storm for cryptocurrency Shiba Inu to skyrocket
- Crypto hackers now target iPhone users via dating apps like Bumble, Tinder
- HP Envy 14 review: A solid no-frills laptop for productivity and occasional gaming
- How to edit PDF online using your browser
- Consumer demand for bigger homes in Mumbai is rising — is a price hike on the cards?
- CBSE class 10, 12 board exams 2022: Date sheet for term 1 exams to be released today