FSN E-COMMERCE VENTURES LIMITED (NYKAA) IPO
Nykaa was launched as an eCommerce portal selling beauty and wellness products. The brand name Nykaa was derived from the Sanskrit word “Nayaka”, which means actress or one in the spotlight. Nykaa was founded by Falguni Nayar. The company’s founder and CEO, Falguni Nayar, is a celebrated businesswoman with a diverse business career spanning 36 years.
Falguni Nayar created FSN E-Commerce Ventures that runs Nykaa and Nykaa Fashion in 2012. Falguni Nayar is a former MD of Kotak Mahindra Capital Company and has served as a board member for many companies like Aviva Insurance, Dabur India, and others. Falguni Nayar has also served as an independent board member of Tata Motors in the past.
In 2018, Nykaa launched Nykaa Man, India’s first multi-brand eCommerce store for men’s grooming. It also launched Nykaa Design Studio, which was later renamed Nykaa Fashion.
In 2020, the company launched Nykaa PRO, a premium membership program that provides users special access to professional beauty products and offers via the Nykaa App.
According to Crunchbase, Nykaa has raised a total of $341.9 million of funding to date. It boasts a wide range of investors, including Max Ventures, Steadview Capital, TPG Growth, TVS Capital, domestic industrial giants like Sunil Munjal, Harsh Mariwala, Atul Nishar and even famous Bollywood actresses like Katrina Kaif and Alia Bhatt.
Its online channel includes mobile apps, websites, and mobile sites. As of March 2021, Nykaa has seen 43.7 million cumulative app downloads. Around 86.7% of its GMV (Gross Merchandising Value) came from mobile apps in FY21.
The offline channel contains 73 physical stores across 38 cities in 3 different store formats as of March 2021. These three formats are Nykaa Luxe stores, Nykaa On Trend stores, and Nykaa Beauty kiosks.
Nykaa has made two acquisitions to date. It acquired Twenty Dresses, a private women’s styling platform, in 2019 and an Indian fashion brand, Pipa Bella, in 2021.
Qualitative factors
- One of India’s leading lifestyle-focused consumer technology platforms.
- Preferred destination for luxury and prestige products in India for consumers and brands
- Resilient, capital-efficient business with a combination of solid growth and profitability.
- Proprietary technology stack.
- A founder-led company supported by a professional management team.
Objects of the offer:
- Fund new retail stores for FSN brands and Nykaa Fashion for Rs 42 Cr.
- Fund Capex to make new warehouses for Rs 42 Cr.
- Repayment of borrowings of Rs 156 Cr.
- Invest Rs 234 Cr for promoting brand visibility and awareness.
- The remaining is for general corporate purposes.
Financials of Nykaa
| Parameter (₹ in million) | FY21 | FY20 | FY19 |
| Total Assets | 13.019.90 | 11,244.82 | 7,756.57 |
| Total Income | 24,526.37 | 17,778.50 | 11,163.82 |
| Total Expenses | 23,772.99 | 17,902.80 | 11,481.02 |
| Profit/(loss) | 619.45 | (163.40) | (245.39) |
Nykaa IPO Issue Details
| Issue Open | 28 Oct 21 – 01 Nov 21 |
| Issue Type | Book Built Issue IPO |
| Issue Size | [.] equity shares of ₹ 1 (aggregating up to ₹ 5351.92 Cr) |
| Fresh Issue | [.] equity shares of ₹ 1 (aggregating up to ₹ 630 Cr) |
| Offer for Sale | 41,972,660 equity shares of ₹ 1 (aggregating up to ₹ 4,721.92 Cr) |
| Face Value | ₹ 1 per equity share |
| Issue Price | ₹ 1085 to ₹ 1125 per equity share |
| Market Lot | 12 shares |
| Min Order Quantity | 12 shares |
| Listing At | BSE, NSE |
| Allotment Date | 08 Nov 21 |
| Listing Date | 11 Nov 21 |
Nykaa IPO Bid Details
| Sl No. | Category | Subscription Status (No. of times) | ||
| 28 Oct 21 | 29 Oct 21 | 01 Nov 21 | ||
| 1. | QIB | 1.40 | 4.72 | 91.18 |
| 2. | NII | 0.60 | 4.17 | 112.02 |
| 3. | RII | 3.51 | 6.32 | 12.24 |
| 4. | Employee | 0.68 | 1.18 | 1.88 |
| Total | 1.56 | 4.82 | 81.78 | |
Nykaa IPO Lot Size and Price for RII
| Application | Lots | Shares | Amount (Cut-off) |
| Minimum | 1 | 12 | ₹ 13,500 |
| Maximum | 14 | 168 | ₹ 189,000 |
| Global Co-ordinators and Book Running Lead Managers |
| 1. Kotak Mahindra Capital Company Limited |
| 2. Morgan Stanley India Company Private Limited |
| 3. BofA Securities India Limited |
| 4. Citigroup Global Markets India Private Limited |
| 5. ICICI Securities Limited |
| 6. JM Financial Limited |
| Registrar to the Offer |
| Link Intime India Private Limited |
| C-101, 1st Floor, 247 Park Lal Bahadur Shastri Marg Vikhroli (West) Mumbai 400 083, Maharashtra Telephone: +91 22 4918 6200 E-mail: nykaa.ipo@linkintime.co.in Website: www.linkintime.co.in Investor grievance e-mail: nykaa.ipo@linkintime.co.in Contact person: Shanti Gopalkrishnan SEBI Registration No.: INR000004058 |
Registered Office: 104, Vasan Udyog Bhavan, Sun Mill Compound, Tulsi Pipe Road, Lower Parel, Mumbai 400 013, Maharashtra; Telephone: + (91) 22 6614 9616 Corporate Office: A2, 4th Floor, Cnergy IT Park, Appasaheb Marathe Marg, Opposite Tata Motors, Prabhadevi, Mumbai 400 025, Maharashtra; Telephone: + (91) 22 3095 8700 |
Source: FSN E-Commerce Ventures Limited RHP
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