FSN E-Commerce Ventures Limited (Nykaa) IPO Details

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Nykaa IPO

Nykaa IPO: Key Details

  • Grey Market Premium (GMP) today: 650 – 670

Note: We neither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.

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

201920202021 Mar2021 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)1.390.08
*Tax and Exceptional Items | ₹ in Crores, except EPS

As of March 2020EPS (Avg*)P/E (Floor)P/E (Cap)
Based on basic EPS0.47 [.] [.]
* Weighted Average for last 3 years

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

TypeValue
Issue Size5,351.92 Cr
Fresh Issue630 Cr
Offer for Sale4,721.92 Cr
Face Value₹1/- per Equity Share
IPO Price₹1,085 – ₹1,125
Lot Size13 shares
LotsMin 1 – Max 13

Key Dates

Date TypeDate
Bid Open28/10/2021
Bid Close 1/11/2021
Allotment Finalization 8/11/2021
Initiation of Refunds 9/11/2021
Credit of Shares10/11/2021
Listing Date11/11/2021

Lot Size and Price

LotsSharesAmount
113₹14,650
13169₹1,90,125

Promoter Group Holding

HoldingPercentage
Pre-Issue54.22%
Post-Issue[.]%

Nykaa IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB75%[.] shares
NII15%[.] shares
RII (Retail)10%[.] shares
Employee[.] shares
Total100%[.] 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

Link Intime

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]

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