Mumbai: FSN E-Commerce Ventures, the parent company of India's biggest cosmetics etailer Nykaa, will launch its initial public offering (IPO) on October 28 to raise as much as Rs 5,200 crore, people with direct knowledge of the matter said on Thursday.
“An anchor placement of up to Rs 2,340 crore will open on Wednesday (27 October), and the IPO will close on Monday, 1 November,” one of the people cited above said.
Nykaa's initial public offering of Rs 5,200 crore includes an initial share issue of Rs 630 crore and an offer to sell in which existing shareholders offload up to the company’s draft red herring prospectus (DRHP) approved by the Securities and Exchange Board of India (SEBI)
Investors who are likely to sell the shares are TPG, Light House India Fund, JM Financial, Yogesh Agencies, Sunil Kant Munjal, Harindarpal Singh Banga, Narotam Sekhsaria and Mala Gaonkar. Promoter Sanjay Nayar Family Trust will sell 4.8 million shares. Founder Falguni Nayar and her family will continue to hold the majority stake after the IPO. They currently own more than 53% in FSN e-commerce ventures.
"The company is seeking a valuation of about $7.4 billion in the IPO," said another person familiar with the details of Nykaa's IPO. According to this person, the price range will be decided by early next week.
Kotak Mahindra Capital, BofA Securities, ICICI Securities, Citibank, Morgan Stanley and JM Financial are book-running lead managers of the issue.
Nykaa is one of the few profitable retailers in India. It posted a net profit of Rs.61.96 crore in the fiscal ended March 31, as compared to a net loss of Rs.16.34 crore in the previous year period. Revenue grew 38% YoY to reach Rs 2,453 crore in FY 21. The company had earlier said that it would use Rs 130 crore from the IPO proceeds to pay off its debts and Rs 200 crore to market its brands.
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