The initial share sale of FSN E-Commerce Ventures, which runs an online marketplace for beauty and wellness products Nykaa, is scheduled to open for public subscription on October 28.
According to the Red Herring Prospectus (RHP), the three-day initial public offering will end on November 1.
The IPO consists of a fresh issue of equity shares of ₹630 crore and an Offer for Sale (OFS) of 4.19 crore shares by the promoters and existing shareholders.
Earlier the fresh issue size was ₹525 crore.
The Sellers of Shares in OFS are – Promoter Sanjay Nair Family Trust and Shareholders – TPG Growth IV SF Pte Ltd, Lighthouse India Fund III, Ltd., Lighthouse India III Employees Trust, Yogesh Agencies & Investments, JM Financial & Investment Consultancy Services and some individual shareholders.
The company had received SEBI’s nod on October 11 to start the initial share sale.
According to the draft papers, the company plans to use the proceeds from the IPO for expansion, opening new retail stores and new warehouses.
It also plans to repay some of its debt, which should bring down interest costs and further increase its profitability.
In addition, the company plans to deploy the proceeds of the IPO for marketing and promotional activities to strengthen its 13 brands, such as Nykaa Cosmetics, Nykaa Naturals and K Beauty, as well as to establish and promote new brands .
FSN E-Commerce Ventures Ltd., founded in 2012 by Falguni Nair, is a digitally native consumer technology platform, which provides consumers with a content-based, lifestyle retail experience.
The company has a diverse portfolio of beauty, personnel care and fashion products including its proprietary manufactured brand products under its two business verticals – Nykaa and Nykaa Fashion.
The company has reported a net profit of Rs 61.94 crore for FY21 as against a net loss of Rs 16.34 crore in FY10. Its revenue from operations rose to Rs 2,441 crore in FY21, up from Rs 1,768 crore in FY10.
It witnessed around 57% CAGR in Gross Merchandise Value (GMV) from FY19-21 and over 48% CAGR in terms of revenue from FY19-21.
The company is one of the leading influencer lifestyle platforms in India with over 12.6 million followers on leading social media platforms as of March 2021.
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 equity shares of the company will be listed on BSE and NSE.
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