Nykaa IPO Price Band Announced. Key things to know in 10 points

The company had received approval from the Indian market regulator Securities and Exchange Board of India (SEBI) on October 11 to go ahead with raising funds through a public offering.

Nykaa IPO Details:

• Nykaa’s three-day share sale will begin on October 28 and close on November 1.
• Initial share sale involves a fresh issue of equity shares ₹630 crore and offer for sale (OFS) of 4.19 crore shares by promoters and existing shareholders, as per details in its red herring prospectus (RHP).
• Falguni Nair, Sanjay Nair, Falguni Nair Family Trust and Sanjay Nair Family Trust are the promoters of the company.
• Nykaa was founded in 2012 by Falguni Nair, a former investment banker. Today, it is a leading multi-brand beauty and personal care platform in India and is making its presence felt in the fashion space.
• The company plans to use the IPO proceeds for expansion by setting up new retail stores and setting up new warehouses. It also plans to repay some of its debt, which should bring down interest costs and further increase its profitability.
• Those selling shares in the OFS include its promoters Sanjay Nair Family Trust and TPG Growth IV SF Pte Ltd, Lighthouse India Fund III, Ltd., Lighthouse India III Employees Trust and a few individual shareholders.
• The company recorded a net profit of ₹Compared to a loss of Rs 61.9 crore for FY21 ₹16 crore in the last financial year. Its revenue from operations jumped ₹2,441 crore to ₹1,768 crores.
• As of March 2021, the company had a cumulative download of 43.7 million across all mobile applications and 86.7% of its online gross merchandise value came through its mobile applications.
• Kotak Mahindra Capital Company, Morgan Stanley India Company, BofA Securities India, Citigroup Global Markets India, JM Financial and ICICI Securities are the merchant bankers to the issue.
• The firm is planning to list on the major stock exchanges BSE and NSE on November 11.

After a short pause, the primary market is all set to witness a mega startup IPO. “As the countdown to Nykaa IPO begins, the market looks sentimental for the company as Nykaa is a profitable one, unlike cash-burning and loss-making startups. with approx. Abhay Doshi, Founder, UnlistedArena.com, said that with 8% penetration in the e-commerce segment as compared to the mature e-tailing categories, the beauty and personal care segment is one of the lowest penetration segments.

Doshi said quality, profitability and growth of promoters and fancy for startup IPO will be the driving force for Nykaa IPO.