Nykaa IPO: SEBI approves Nykaa's Rs 4,000 crore IPO draft; Check details

Market regulator Securities and Exchange Board of India (SEBI) has given its approval for the Rs 4,000 crore initial public offering (IPO) of FSN E-Commerce Ventures, which owns beauty aggregator platform Nykaa. The online beauty retail start-up is likely to launch the initial offering by October end at a valuation of over Rs 40,000 crore, according to CNBC TV18. The company had filed the draft red herring prospectus with SEBI back in August.

According to the prospectus filed, Nykaa is looking to raise Rs 4,000 crore through an initial share sale. Nykaa has sought allowance for an initial public offering (IPO) comprising a fresh issue of equity shares worth Rs 525 crore and an offer for sale (OFS) of 43,111,670 equity shares by promoters and existing shareholders. Sanjay Nayar, TPG, Lighthouse and Sunil Munjal are the major shareholders selling portions. The final valuations and IPO dates are still to be announced.

Nykaa IPO details

A leading Indian retail seller company of beauty and fashion products, Nykaa had over 12.6 million followers across leading social media platforms as of March 2021. The company, which is now coming out with an IPO, has reported a net profit of Rs 61.94 crore for FY21 compared to a net loss of Rs 16.34 crore in FY20. Its revenue from operations growth is also on the positive side as it jumped from Rs 1,768 crore in FY20 to Rs 2,441crore in FY21. The equity shares of the company once listed will be up on the BSE and NSE.

Nykaa IPO release date

Beauty retailer Nykaa had earlier filed papers for its IPO in August. It was rumoured to go public by 2022. However, SEBI has now granted its approval for the IPO, meaning the company could roll out its IPO by October end.

Founded in 2012 by Falguni Nayar, FSN E-Commerce Ventures, which owns Nykaa, is now in plans to widen its business horizons. Based on the draft paper, the retailing giant plans to use the proceeds from the IPO for expansion, by setting up new retail stores and establishing new warehouses for further growth. The company also plans to finish off some debts, which will further add to its profitability. The firm, which holds a diverse portfolio of beauty, personnel care and fashion products, will look at further strengthening its business model with the upcoming Nykaa IPO. 

(Image: PTI)