Nykaa sets IPO launch date, seeks valuation of $7.4 billion


The Nykaa IPO will launch on October 28 to raise as much as Rs 5,200 crore at a valuation of $7.4 billion. It includes a primary issue worth as much as Rs 630 crore and an OFS of 43.11 million shares. The price band will be disclosed next week.



Nykaa, an online retailer of cosmetics and personal care products, will launch its three-day initial public offering (IPO) on October 28 to raise as much as Rs 5,200 crore, people with direct knowledge of the matter said on Thursday.


"An anchor placement of up to Rs 2,340 crore will open on Wednesday (Oct. 27), and the IPO will close on Monday, November 1," one of the people cited above said.


The Rs 5,200-crore Nykaa IPO includes a primary issue of stock worth as much as Rs 630 crore, and an offer for sale wherein existing shareholders will offload up to 43.11 million shares, according to the company’s draft red herring prospectus (DRHP) approved by the Securities and Exchange Board of India (SEBI).


Investors who are likely to sell stake include TPG, Light House India Fund, JM Financial, Yogesh Agencies, Sunil Kant Munjal, Harindarpal Singh Banga, Narotam Sekhsaria and Mala Gaonkar. Promoter Sanjay Nayar Family Trust will sell 4.8 million shares. Founder Falguni Nayar and her family will continue to own a majority stake after the IPO. They currently hold more than 53% in FSN E-Commerce Ventures, the parent firm of Nykaa.


“The company is seeking a valuation of around $7.4 billion in the IPO,” said another person aware of the Nykaa IPO details. According to this person, the price band will be decided by early next week.


Kotak Mahindra Capital, BofA Securities, ICICI Securities, Citibank, Morgan Stanley and JM Financial are book-running lead managers of the issue.


Nykaa is among a few profitable etailers in India. It reported a net profit of Rs 61.96 crore in the fiscal ended March 31, compared to a net loss of Rs 16.34 crore in the year-ago period. Revenue grew 38% year-on-year to Rs 2,453 crore in FY21. The company had earlier said it would use Rs 130 crore from the IPO proceeds to repay its debt and Rs 200 crore to market its brands.

Mumbai: Nykaa, an online retailer of cosmetics and personal care products, will launch its three-day initial public offering (IPO) on October 28 to raise as much as Rs 5,200 crore, people with direct knowledge of the matter said on Thursday.

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