Updated: October 28, 2021 9:44:55 am
Nykaa IPO: The initial public offering (IPO) of FSN E-Commerce Ventures Ltd, which operates online beauty e-commerce platform Nykaa, will open for subscription on Thursday, October 28, 2021, at a price band of Rs 1,085-1,125 per share. The offer will be available till Monday, November 1, 2021.
Through the offer, FSN E-Commerce Ventures aims to raise Rs 5,352 crore. The Nykaa IPO comprises of a fresh issue of equity shares worth Rs 630 crore and an offer for sale (OFS) of 41,972,660 equity shares by promoter and existing shareholders.
FSN E-Commerce Ventures, founded in 2012 by Falguni Nayar – a former investment banker turned entrepreneur, is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers.
Those selling shares in the OFS are — promoter Sanjay Nayar Family Trust and shareholders — TPG Growth IV SF Pte Ltd, Lighthouse India Fund III, Limited, Lighthouse India III Employee Trust, Yogesh Agencies & Investments, J M Financial and Investment Consultancy Services and some individual shareholders.
The company received the nod from market regulator Sebi on October 11 to launch the IPO.
Nykaa 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.
Investors who wish to subscribe to Nykaa IPO can bid in a lot of 12 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 13,500 to get a single lot of Nykaa IPO. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).
The applicants also must note that the cut-off time for UPI mandate confirmation is Tuesday, November 2, 2021, upto 12:00 pm. If they fail to do so then their application may not be considered.
Kotak Mahindra Capital, Morgan Stanley India, ICICI Securities, Bofa Securities India, JM Financial and Citigroup Global Markets India are the book running lead managers to the offer while Link Intime India is the registrar of the issue.
Before heading into the IPO, FSN E-Commerce Ventures raised nearly Rs 2,396 crore (Rs 23,95,84,46,625) from 174 anchor investors in lieu of 2,12,96,397 equity shares at Rs 1,125 each, data from the stock exchanges showed.
The anchor investors include the likes of BlackRock Global Funds, Fidelity Funds, Nomura, Government of Singapore, Monetary Authority of Singapore, Canada Pension Plan Investment Board, T Rowe Price, Tiger Global Investments Fund, Goldman Sachs and Morgan Stanley among others.
The research teams at Anand Rathi Share and Stock Brokers and Motilal Oswal Financial Services in their respective IPO notes have recommended a “Subscribe” to the offer.
Motilal Oswal Financial Services in its IPO report said, “We like Nykaa given its leadership position in online BPC market, customer centric approach, profitable tech platform and capital efficient business model. The issue is valued at 16.1x FY22 EV/Sales on a post issue and annualized basis, which seems to be similar to other Indian unicorns. We believe Nykaa is rightly placed to tap the high growth digital/online penetration in BPC/Fashion market. We recommend Subscribe. Investors with high risk appetite can Subscribe for Listing Gains given fancy for unique and first of its kind listing in the e-commerce space.”
The share allotment is likely to take place on Monday, November 8, 2021, and the shares are expected to be listed on Thursday, November 11, 2021, according to the timeline given in the red herring prospectus (RHP).
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