The initial share sale of FSN E-Commerce Ventures, which runs an online marketplace for beauty and wellness products Nykaa, is set to open for public subscription on October 28.
The IPO comprises a fresh issue of equity shares worth Rs 630 crore and an offer for sale (OFS) of 4.19 crore shares by promoters and existing shareholders, it added. Earlier, the fresh issue size was Rs 525 crore.
The company is yet to announce the price band of the IPO. According to experts, Nykaa shares, having a face value of Rs 1 may be priced in the range of Rs 1,120- Rs 1,125 and the lot size is likely to be 13.
Out of the total IPO size, 10 percent percent may be reserved for retail investors.
At present, Nykaa shares are commanding a premium of Rs 670 per share in the grey market, according to various market sources.
The company received SEBI's approval on October 11 to launch the initial share sale.
The three-day initial public offering will conclude on November 1, according to the red herring prospectus (RHP). The equity shares of the company will be listed on the BSE and NSE.
According to the draft papers, the company plans to use the proceeds from the IPO for expansion, by setting up new retail stores and establishing new warehouses. It also plans to retire some of its debt, which should bring down interest costs and further shore up its profitability.
In addition, the company is planning to deploy the proceeds of the IPO for marketing and promotional activities to focus on strengthening its 13 brands, such as Nykaa Cosmetics, Nykaa Naturals, and Kay Beauty along with establishing and promoting new brands.
Investors likely to dilute stakes
Investors likely to dilute their stakes include TPG, Light House India Fund, JM Financial, Yogesh Agencies, Sunil Kant Munjal, Harindarpal Singh Banga, Narotam Sekhsaria, and Mala Gaonkar, the DRHP showed.
Those selling shares in the OFS include TPG Growth IV SF Pte Ltd, Lighthouse India Fund III, Limited, Lighthouse India III Employee Trust, Yogesh Agencies and Investments and J M Financial and Investment Consultancy Services and Sanjay Nayar Family Trust.
The Sanjay Nayar Family Trust, a promoter, will sell 4.8 million shares. Founder Falguni Nayar and her family will continue to own a majority stake even after the IPO, Economic Times had reported earlier.
Prior to the IPO, the company will open an anchor book of up to Rs 2,340 crore on Wednesday (October 27).
Founded by former investment banker Falguni Nayar
Founded in 2012 by former investment banker Falguni Nayar is the founder of the company. Falguni Nayar, her husband Sanjay Nayar and two children, hold more than 53 percent in FSN E–Commerce Ventures, the parent firm of Nykaa.
The company is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers. It has a diverse portfolio of beauty, personal care and fashion products, including its owned brand products manufactured by it.
For the quarter ended June 30, 2021, the company had reported a net profit of Rs 3.5 crore on revenues of Rs 822 crore and for the full year ending March 31, 2021, its net profit stood at Rs 62 crore on revenues of Rs 2,453 crore.
The company 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 jumped to Rs 2,441crore in FY21 from Rs 1,768 crore in FY20.
It clocked nearly 57 per cent CAGR in gross merchandise value (GMV) from FY19-21 and more than 48 per cent CAGR in revenue terms from FY19-21. The company is one of the leading influential lifestyle platforms in India with over 12.6 million followers across leading social media platforms as of March 2021.
(With inputs from PTI)