The holding company of Nykaa, FSN Ecommerce Ventures Pvt. Ltd will submit its draught red herring prospectus by the end of June or early July, and the IPO is expected to take place in the March quarter of the current fiscal year “one of the two persons mentioned above stated “The public offering will be accompanied by a selling offer to allow current investors to withdraw. The price range has yet to be determined, but a 10-20% share in the firm may be sold to the public for a reasonable fee “e-float.”
Nykaa intends to go public later this fiscal year at a valuation of $4.5 billion, up from a previous valuation of more than $3 billion, as the beauty retailing startup benefits from a significant shift toward online sales during the pandemic.
Mint (financial news site) reported in January, citing a source familiar with the preparations, that Nykaa was considering going public by the end of December or early 2022, at a valuation of more than $3 billion.
They stated that the increase in Nykaa’s total valuation is being driven by a surge in sales and profit for the e-commerce platform, largely as a result of covid-related interruptions, which has forced more people to shop online.
What is Nykaa?
Falguni Nayar established Nykaa, an Indian lifestyle shop of beauty, health, and fashion items, in 2012. In 2015, the firm transitioned from an online-only approach to an omnichannel model and began offering items other than cosmetics. By 2020, it will have over 2,000 brands and 200,000 goods available on its platforms.
Nykaa operates 76 physical locations as well as numerous eCommerce channels via websites and mobile apps. It is a unicorn company with a valuation of Rs 85 billion (US$1.2 billion) as of 2020.
Nykaa is India’s leading women-centric online marketplace, with over 15 million registered consumers and 1.5 million orders processed every month. The site has carved out a place for itself by focusing excessively on the beauty and personal care market, which distinguishes it from other horizontal e-commerce firms such as Flipkart and Amazon.
Financials of Nykaa IPO?
Nykaa has hired Kotak Mahindra Capital Co. and Morgan Stanley as its initial public offering (IPO) managers (IPO).
While several large unicorn startups, or those with a valuation of more than $1 billion, such as Paytm, Flipkart, Zomato, Policybazaar, Grofers, and Pepperfry, are also looking for public listings, Nykaa is the only profitable startup that will meet the criteria to list on the main board of Indian stock exchanges.
Since the fiscal year 2019, Nykaa has reported yearly profit earnings. It was one of 11 businesses to becoming a unicorn last year, after collecting $25 million from Steadview Capital in March 2020.
The public offer made by Nykaa will be offered for sale in order to enable an exit for the company’s current investors. While the price range of the offer has not yet been determined, the source indicated that 10-20% of the company’s share may be given to the public in exchange for an appropriate free flow.
Incorporated in 2012, the firm was seed-funded by Falguni Nayar’s friends and family. It got Rs 20 crore in Series A funding from Indra Banga and Harindarpal Singh Banga in 2014, at a valuation of Rs 120 crore. It received its first institutional financing from TVS Capital-led investors in 2015 when it raised Rs 59.6 crore at a valuation of Rs 500.7 crore. TPG purchased an 11.9 per cent share.
Nykaa IPO details:
| IPO Opening Date | 2021 (?) |
| IPO Closing Date | 2021 (?) |
| Issue Type | Book Built |
| Face Value | ? per share |
| IPO Price | ? to? per equity share |
| Market Lot | ? |
| Min Order Quantity | ? |
| Listing At | BSE, NSE |
| Issue Size | $500-$700 Million |
What would be the price band of the Nykaa IPO?
The price range for Nykaa’s offer will be decided by the use of procedural book-building procedures. The firm has yet to decide on and publicise the price of the issue.
This page will be updated as soon as we get price information from a reputable source.
Nykaa has hired Kotak Mahindra Capital Co. and Morgan Stanley as its initial public offering (IPO) managers (IPO) and they will complete the procedural book-building procedures.
What would be the Grey Market Premium of Nykaa IPO?
Although GMP has not yet been announced, the price will be updated as soon as we obtain official information from our sources.
Make sure your notifications are turned on to receive the most up-to-date information from our website.
What will be the release date for Nykaa IPO?
The date for the Initial Public Offering has not been determined by officials, although it is expected to be announced soon. The IPO is expected to be issued in 2021-2022 when the pandemic scenario has subsided.
However, as soon as more exact information about the dates becomes available, we will notify you.
How can you apply for the Nykaa IPO?
You may now apply for the IPO through Zerodha, Upstox, or any other broker following the standard IPO application process; if you don’t know how to apply for an IPO, see our post on ‘Easy Step by Step guide apply for IPO in India.’
Earning an IPO allocation, on the other hand, is analogous to winning the lottery, and it all rests on your luck. If you get an IPO allocation, read our blog on ‘How to make money using IPO in India.’
Because IPO applications are subject to a cash block with the bank account, use the Auto Pay option while filling out your UPI ID application.
Conclusion:
This substantial increase in the company’s projected valuation is being attributed to gains achieved by the firm as a result of the migration of clients to online purchases as a result of the disruption created by the COVID-19 epidemic. According to a source close to the company’s preparations, Nykaa hopes to file its first draught of the red herring prospectus by the end of June or early July. The IPO is scheduled to go public in the March quarter of this fiscal year.
The firm was started one year ago, with women as its primary customers. So far, the site serves about 15 million registered users and processes 1.5 million orders every month. Nykaa is one of the rare start-up brands that are financially profitable.
In my opinion, the IPO will be another success story on the D-street.
