NYKAA IPO TO OPEN ON OCTOBER 28, SETS PRICE BAND OF RS 1.085-1,125 A SHARE
Nykaa owns by FSN E-commerce ventures Ltd. It’s an e-commerce company founded by Falguni Nayar. Nykaa organised and managed marketplace that aims to inspire consumers to make fashion and lifestyles choices that work best for them.
Company has a wide assortment of offers, through price points, to meet women, men and children of different demographic groups. At March 31, 2021, Nykaa fashion retails more than 2000 brands and over 1.8 million SKUs offering fashion products in four consumer segments; women, men, children and homes.
Within this consumer segments, Nykaa merchandise across several categories including Indian wear , western dresses footwear, bag, jewellery, home décor and etc. company provides a mix of brands through established domestic brands, global brands, luxury brands and emerging brands and designers.
Nykaa has 76 offline stores. Nykaa is all set to launch its Initial Public Offering on October 28.
Details you need to know about Nykaa IPO
IPO opening date is October 28, 2021 and closing on November 1, 2021.
Price of one lot
The tentative price band issue is Rs 1,085 – Rs 1,125 per share.
The lot size refers to minimum number of shares that investor has to apply. The lot size of Nykaa IPO is 12. Minimum order quantity is 12 shares. Issue size [.]Eq shares of Rs 1 (aggregating up to Rs 5,351.92 Cr. Fresh issue – [.] Eq shares of Rs 1 (aggregating up to Rs 630 Cr). Offer for sale – 41,972,660 Eq shares of Rs 1 (aggregating up to Rs 4,721.92 Cr).
The Nykaa IPO market 1 lot size is 12 shares. An individual investor can apply for up to 14 lots (168 shares or Rs 189,000).
Allotment date & Refund
Basis of allotment date November 8, 2021. If share not allotted then company will take initiation of refund on November 9, 2021. Credit of shares to Demat Account on November 10, 2021. IPO will be listed on November 11, 2021.
FSN E-commerce ventures, operating beauty shops Nykaa, set the price range of Rs 1,085- Rs. 1, 125 for its first public sale of shares. The first call for public savings (IPO) will remain open on October 28, with an end date of November 1. At the summit, the beauty start-up will be valued at Rs 53,200 crore ($7 billion).
The IPO of Nykaa will involve the issue of new shares of Rs 630 crore and the secondary sale of Rs 4,722 crore. More than a dozen entities dispose of their assets in connection with the IPO. Among them are developers Falguni Nayar and Sanjay Nayar, private equity corporations TPG and Lighthouse.
The overall size of the program is 5,352 crores Rs. This will be the largest public offering since that of the online delivery Company Zomato’s Rs 9,375 crore offers in July. Nykaa submitted its draft prospectus on red herring (HPR) to the SEBI Market regulator on 2nd August.
The company has scaled up the new emission component from Rs 525 crore to Rs 630 crore. The company has revealed.hat company will spend Rs 234 crore “to acquire and retain customers by enhancing the visibility and awareness of our brands.” It will be about Rs 156 crore used for debt repayment and Rs 84 crore will be spent for setting up of new retail stores and warehouse.
Nykaa was established in 2012 by Falguni Nayar, former Chief Executive Officer of Kotak Mahindra Capital Company. Together with her husband Sanjay Nayar former CEO of PE major KKR she holds 54 percent Company’s shares, which will be evaluated on Rs 28,700 crore in the upper end of the price range. The IPO of Nykaa will require a mandatory 75 percent participation of Qualified institutional Buyers (QIB) as it has suffered losses during two of the previous three fiscal years.
The IPO retail quota will be 10 percent versus 35 percent for those who meet the profitability criteria. The book running lead managers for the IPO include BofA securities, Morgan Stanley, Kotak Mahindra Capital Citigroup, ICICI Securities and JM financial. Recently, the brokerage company Jefferies stated that Nykaa has shown that growth and profitability need not to be mutually exclusive.
The online opportunity in India attracts players from all walks of life and growth, in most cases, comes at the expense of profitability. That, in itself, is an enormous differentiator for Nykaa, a vertical e-commerce power in the beauty area.
The range of products, discovery and authenticity lead to high repetitions and the content ecosystem is attractive, that is the voice of note. Nykaa reported net earnings of Rs 62 crore for 2020-2021 (fiscal year 2021) on revenues of Rs 2,440 crores with a gross market value (GMV) of 540 million dollar.
Nykaa IPO- Photo Credit: – moneycontrol.com
After a small break, the primary market is set to attend mega IPO start-ups. As the countdown to the IPO of Nykaa begins, the market seems to be enthusiastic about the company because unlike money hungry and deficit-hungry start-ups, Nykaa is profitable. 8 percent penetration, beauty and personal care segment in E-commerce category is one of the most under penetrated segments compared to matured e-tailing categories providing huge scope for start-ups like Nykaa, said by Abhay Doshi, founder, Unlistedarena.com. Promoters quality, profitability and growth and fancy for start-up IPOs will be the driving force for Nykaa IPO, added Doshi.