Everything You Must Know About Nykaa’s IPO Launch; When, Valuation, and More

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Everything You Must Know About Nykaa’s IPO Launch; When, Valuation, and More

By Malvika Gurung

Investing.com -- The Mumbai-based online cosmetic brand Nykaa is in talks since its parent body, FSN E-Commerce Ventures Limited has announced its public listing of the company on the Indian exchange.

After receiving a nod from market regulator Sebi on October 11, the company has now announced to launch its IPO for public subscription on October 28. 

The online retailer is set to raise an estimated sum of Rs 2,340 crore and seeks a valuation worth $7.4 billion. The IPO can be subscribed only until November 1 and the price band of each share is fixed at Rs 1,085 to Rs 1,125.

While share allotments would finalise on November 8, the investors will get their shares on November 10 and trading will start from November 11.

Nykaa will use the proceeds to invest in its subsidiaries, expand new retail stores, warehouses and repay its debts.

The company founder, Falguni Nayar and her family own a major stake of 53% in the company. 

The Rs 5,200 crore is made up of a primary issue of stock worth Rs 630 crore, along with an OFS of 4.197 crore equity shares, which the existing shareholders of the company offload, worth Rs 43.11 million.

Besides, Kotak Mahindra (NS: KTKM ) Capital Company, Morgan Stanley (NYSE: MS ) India Company, BofA Securities India, Citigroup (NYSE: C ) Global Markets India, ICICI Securities, and JM Financial (NS: JMSH ) will manage the company’s public issue.

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  • mark digao @mark digao
    The majority of the proceeds from the IPO will be used to acquire and retain customers by enhancing the visibility and awareness of the brands. It also plans to use the proceed for repayment or prepayment of outstanding borrowings and for future capital expenditures.
    Like 0
  • mark digao @mark digao
    Around 16 existing investors such as TPG Growth IV SF Pte, Lighthouse India Fund, Yogesh Agencies & Investments, JM Financial and others are expected to offload their shares in the IPO.Existing employees who hold stock options at Nykaa also have an option to offload a total of 250,000 equity shares in the upcoming IPO.
    Like 0
  • Pandian R S @Pandian R S
    Whether the company making profits, what would be the PE ratio such details missing
    Like 1
  • Chirag Patel @Chirag Patel
    what about retail portion ..??
    Like 0
    • Vishnu P S @Vishnu P S
      10%
      Like 0
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  • Chirag Patel @Chirag Patel
    what about retail portion ..??
    Like 0

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