On October 14, sources reported CNBC-TV18 that the Securities and Exchange Board of India (SEBI) has approved Nykaa’s Rs 4,000 crore initial public offering (IPO).
According to the report, the online cosmetics retail company is expected to be valued at over Rs 40,000 crore.
Nykaa is aiming to raise Rs 525 crore with a new stock issue. Aside from the new issuance, which will be main shares, the business plans to sell 43.1 million secondary shares.
The majority of the Rs 4,000 crore collected from the IPO would be utilised to compensate current shareholders who are selling their shares. The selling stockholders include Sanjay Nayar, TPG, Lighthouse, and Sunil Munjal.
Nykaa is one of the most distinctive businesses to enter India’s public marketplaces. For starters, it’s one of the few profitable unicorns to go public. It’s also one of India’s rare new-age companies with a promoter group that controls more than half of the company, despite its billion-dollar value.
Falguni Nayar, a former investment banker, started the firm in 2012, and it is now a prominent destination for beauty goods, with its own chain of physical stores and projected sales of ($250 million) in fiscal 2020. TPG and Fidelity are among its investors.
Nykaa currently features over 1,500 brands in its inventory, including top premium brands like as Bobbi Brown, L’Occitane, and Estee Lauder, as well as 68 physical locations around the nation. Nykaa made Rs 1,860 crore in sales in FY20, making it the only profitable unicorn that is going public.
According to a source who spoke to Moneycontrol in August, the i-bankers working on the problem include Kotak Mahindra Capital, Bofa Securities, Citi, JM Financial, Morgan Stanley, and ICICI Securities.
