Indian beauty startup Nykaa aims for a valuation above $7b in Indian IPO

Nykaa founder Falguni Nayar. Photo: Abhijit Bhatlekar/Mint

FSN E-Commerce Ventures Ltd, the parent of cosmetics e-tailer Nykaa, has fixed the price band of its initial public offering (IPO) at 1085-1125 a share. It is looking for a valuation of 52,574 crore (around $7.4 billion).

The issue will open for subscription on 28 October and close on 1 November.

The Nykaa IPO includes a primary issue of equity shares worth 630 crore, up from an 525 crore planed earlier, and an offer for sale (OFS) of up to 41.97 million shares by existing shareholders.

At the upper end of the price band, the firm hopes to raise around 5,352 crore. It plans to list on 11 November.

Investors in OFS who will sell their shares include Sanjay Nayar Family Trust, TPG Growth IV SF Pte, Lighthouse India Fund III, Yogesh Agencies and Investments, JM Financial and Investment Consultancy Services, Sunil Kant Munjal, Harindarpal Singh Banga jointly with Indra Banga, Narotam Sekhsaria, Rishabh Mariwala, Mala Gaonkar, Jeenoo Khakhar jointly with Kanika Khakhar and Isha Khakhar, Michael Carlos, Samina Hamied, Sanjay Maliah, Vikram Sud and Karan Swani.

Currently, Falguni Nayar Family Trust and Sanjay Nayar Family Trust hold 22.33% and 23.67% stake respectively in the firm.

Kotak Mahindra Capital, Morgan Stanley India, Bofa Securities, Citigroup Global Markets India, ICICI Securities, and JM Financial are the book running lead managers to the issue.

Nykaa will allocate 42 crore from the issue to investment in its arms FSN Brands or Nykaa Fashions for funding the establishment of new retail stores. Another 42 crore and 156 crore will be used for capital expenditure and repayment of debt. Nykaa will also use 234 crore to enhance the visibility and awareness of its brands.

Nykaa was founded in 2012 by investment banker Falguni Nayar and is a leading player in the online beauty aggregator segment. The firm is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers. It has a diverse portfolio of beauty, personal care, and fashion products, including brand products manufactured by it.

As of March 2021, the company had cumulative downloads of 43.7 million across all mobile applications and 86.7% of its online gross merchandise value came through its mobile applications.

The article was first published on livemint.com.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.