
Nykaa IPO: Key Details
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Company Information
FSN E–Commerce Ventures Limited a.k.a Nykaa, incorporated in 2012, is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers. They have a
a diverse portfolio of beauty, personal care, and fashion products, including owned brand products
manufactured by them.
They offer consumers an Omnichannel experience with an endeavor to cater to the consumers’ preferences and convenience:
- Online: Mobile applications, websites and mobile sites. As of Aug 31, 2021, they had a cumulative downloads of 55.8 million for their mobile applications
- Offline: 80 physical stores across 40 cities in India over three different store formats
They operate through two different business verticals to cater to different customer needs
- Nykaa: Beauty and personal care
- Nykaa Fashion: Apparel and accessories
Competitive Strengths
- One of India’s leading lifestyle focused consumer technology platform
- Preferred destination for luxury and prestige products in India for consumers and brands
- Resilient, capital efficient business with a combination of strong growth and profitability
- Proprietary technology stack
- Founder-led company supported by a professional management team
Company Strategy
- Expansion of the production capacity
- Strengthen the foothold in India’s expanding market
- Continue to focus on R&D
- Diversify products and solutions range, with focus on growth by expansion into opportunistic areas
- Increasing its reach in the international market
Proceeds from Nykaa IPO will be used to:
- Investment in subsidiaries, namely, FSN Brands and / or Nykaa Fashion for funding the set-up of new retail stores;
- Capital expenditure to be incurred by the Company and investment in certain subsidiaries, namely, Nykaa E-Retail, Nykaa Fashion and FSN Brands for funding the set-up of new warehouses;
- Repayment or pre-payment, in full or in part, of certain borrowings
- Expenditure to acquire and retain customers by enhancing the visibility and awareness of brands; and
- General corporate purposes
Nykaa IPO: Financials
2019 | 2020 | 2021 Mar | 2021 Jun | |
---|---|---|---|---|
Revenue from Ops | ₹1111.4 | ₹1767.5 | ₹2440.9 | ₹816.99 |
Profit before Excep* | ₹(31.72) | ₹(12.43) | ₹75.34 | ₹3.15 |
Profit after Tax | ₹(24.54) | ₹(16.34) | ₹61.95 | ₹3.52 |
EPS (Basic) | (0.59) | (0.39) | 1.39 | 0.08 |
As of March 2020 | EPS (Avg*) | P/E (Floor) | P/E (Cap) |
---|---|---|---|
Based on basic EPS | 0.47 | [.] | [.] |
Nykaa IPO: Comparison with listed industry peers
According to the RHP, the company does not have any comparable listed industry peers in India
Nykaa IPO Dashboard
Issue Details
Type | Value |
---|---|
Issue Size | ₹5,351.92 Cr |
Fresh Issue | ₹630 Cr |
Offer for Sale | ₹4,721.92 Cr |
Face Value | ₹1/- per Equity Share |
IPO Price | ₹1,085 – ₹1,125 |
Lot Size | 13 shares |
Lots | Min 1 – Max 13 |
Key Dates
Date Type | Date |
---|---|
Bid Open | 28/10/2021 |
Bid Close | 1/11/2021 |
Allotment Finalization | 8/11/2021 |
Initiation of Refunds | 9/11/2021 |
Credit of Shares | 10/11/2021 |
Listing Date | 11/11/2021 |
Lot Size and Price
Lots | Shares | Amount |
---|---|---|
1 | 13 | ₹14,650 |
13 | 169 | ₹1,90,125 |
Promoter Group Holding
Holding | Percentage |
---|---|
Pre-Issue | 54.22% |
Post-Issue | [.]% |
Nykaa IPO: Investor Quota and Shares Offered
Investor Type | Quota | Shares on Offer |
---|---|---|
QIB | 75% | [.] shares |
NII | 15% | [.] shares |
RII (Retail) | 10% | [.] shares |
Employee | [.] shares | |
Total | 100% | [.] shares |
Nykaa IPO: Risks
- Inability to manage growth or execute strategies effectively in future may adversly affect business
- Failing to acquire new consumers or to do so in a cost-effective manner
- Pending litigations against the Company, Subsidiaries, and certain Directors
- Uncertainity due to changing regulations in the e-commerce space
- Failure to identify and effectively respond to changing consumer preferences and spending patterns or changing beauty and fashion trends in a timely manner
For complete internal and external risk factors, you can refer to the RHP of the company.
Nykaa IPO: Registrar and Lead Managers
Registrar of the Issue
C-101, 247 Park
L B S Marg, Vikhroli (West)
Mumbai 400 083
Maharashtra, India
Phone: 022 4918 6200
Email: [email protected]
Lead Managers of the Issue
Kotak Mahindra Capital Company Limited
Morgan Stanley India Company Private Limited
BofA Securities India Limited
Citigroup Global Markets India Private Limited
ICICI Securities Limited
JM Financial Limited
Phone: +91 22 4366 6666
Email: [email protected]