Nykaa IPO - Information Note

FSN E-Commerce, the company that owns and operates the Nykaa digital brand, proposes to come out with an IPO of Rs.5,352 crore. The issue opens on 28-October and closes for subscription on 01-November. Nykaa is a digital platform that offers an agnostic market place for beauty products, healthcare products, apparel and accessories. It offers a one-stop shop for a range of brands across a plethora of price points.

FSN E-Commerce Ventures was promoted by Falguni Nayar, the former head of investment banking at Kotak Mahindra Capital. Falguni was also an independent director on the board of Tata Sons. FSN E-Commerce Ventures was floated in 2012 and it has emerged as one of the few profitable digital specialized ecommerce properties in India.

Below are the terms which you should know about Nykaa IPO

Key terms of the IPO issue of FSN E-Commerce Ventures (Nykaa)

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Here are some of the key merits of the FSN E-Commerce Ventures (Nykaa) business model

a) Nykaa has a diverse portfolio of beauty, fashion and personal care products

b) It is the only digital profit making ecommerce venture in India

c) Provides a platform for leading national and international brands

d) Nykaa Vertical offers a platform for beauty and personal care products

e) Nykaa Fashions Vertical offers a platform for apparel and accessories

f) Nykaa combines proprietary brands, white labelled brands and external brands

Also Check - Nykaa IPO - 7 Things to know before applying for IPO
 

How is the FSN E-Commerce Ventures (Nykaa) IPO structured?

The IPO will be a combination of a fresh issue and an offer for sale. Here is a gist of the IPO offer of the company.

a) The fresh issue component will entail the issue of 56 lakh shares and at the peak price band of Rs.1,125 per share, the fresh issue amount will be Rs.630 crore. 

b) The OFS component will comprise of the issue of 4,19,72,660 shares and at the peak price band of Rs.1,125, the OFS value would be Rs.4,722 crore resulting in a total IPO issue size of Rs.5,352 crore.

c) The Falguni Nayar family trust will offer 48 lakh shares as part of the OFS and as a result the promoter stake will come down marginally from 54.22% to 52.56%, although they will still retain their majority ownership.

Apart from the promoter group, other early investors including PE funds and family offices will also be participating in the offer for sale. At the upper end of the price band, FSN E-Commerce Ventures (Nykaa) will be valued at Rs.53,204 crore.
 

Financials of Nykaa