Nykaa’s IPO With A Price Range Of Rs 1,085-1,125 Per Share.
Nykaa’s IPO Offers can be submitted for at least 12 shares and then for multiples of 12 shares.
This offer includes a reservation from up to 2,50,000 shares for eligible employees to purchase. FSN E-Commerce Ventures Ltd, which operates online beauty e-commerce platform Nykaa’s IPO. Announced Monday that it had set a price range of 1,085 to 1,125 rupees per share for its initial public offering (IPO) will be open for a subscription.
The IPO will open for registration on October 28 and will end on November 1. It consists of shares worth up to 630 crore rupees (new edition). And offers to sell off up to 41,972,660 shares offered by selling shareholders (offers to sell, or OFS), the statement said. Offers can be submitted for at least 12 shares and then for multiples of 12 shares. The offer includes reservations for up to 250,000 shares for purchase by eligible employees, he added.
The company is reportedly expecting an estimate of more than $7 billion.
Existing investors such as TPG Growth IV SF Pte, Lighthouse India Fund, and others are expect to receive their shares in the IPO. Organizers, including founder and CEO Falguni Nayar, currently hold more than 50 percent of the company’s shares. Nykaa reported a net profit of Rs 61.9 million for FY 21 compared to a loss of Rs 16.3 million in FY 20. Total sales were Rs 2452.6 million in FY 21 compare to Rs 1777.8 million in 2020.
“We are one of the leading consumer technology platforms in India…(c) over 3 million SKUs from over 4,000 brands and 13 million customer base accumulated with transactions… We believe there is significant freedom for growth at every level in India’s digital industry mouthpiece for use cases. Said Nykaa CEO Dr. and CEO Falguni Nayar at the briefing.
He explained that Nykaa’s IPO although internet access is very high – 660-690 million users, the online shopper base is still only 150-180 million.
“We believe this is likely to increase over the next five years, with penetration reaching 24-28 percent of the consumer base … billion-dollar businesses going forward. And fashion, which is a $54 billion business today, will likely become a $124 billion business by 2025,” he said.
Founded in 2012, Nykaa is a natural digital consumer technology platform that provides content-based retail lifestyle experiences to consumers. It has a diverse portfolio of personal care, beauty, also fashion products, including third-party private label products.
In the 2021 last year, 17.1 million orders were placed on the beauty and personal care product platform Nykaa for a total GMV of Rs 33,804.1 million, up 35.3% from 2020. In addition to its online presence, the company has 38 luxury stores, 32 trending stores, and nine pavilions. When asked about the contribution of offline retail, Nykaa CEO Anchit Nayar said. Before the pandemic, around 8-10% of the company’s business came from physical retail.
“I think in the long term, because we want to continue to focus on brick-and-mortar retail. We (will) continue to expand our physical store network and reach the triple-digit numbers, we can contribute 12 to 15% of the total business,” he said. He added that physical retail channels would make a double-digit contribution in the long run. But e-commerce will continue to be the lion’s share of the overall business.
