Nykaa IPO ends with robust subscription

Published on Nov 02, 2021 11:36

The initial public offer (IPO) of FSN E-Commerce Ventures (Nykaa) received bids for 2,16,59,47,080 shares as against 2,64,85,479 shares on offer on Monday (1 November 2021). The issue was subscribed 81.78 times.

The retail individual investors category was subscribed 12.24 times. The non institutional investors category was subscribed 112.02 times. The qualified institutional buyers category was subscribed 91.18 times.

The issue opened for bidding on Thursday (28 October 2021) and it closed on Monday (1 November 2021). The price band of the IPO was fixed at Rs 1,085-1,125 per share.

The IPO comprised of a fresh issue of up to Rs 630 crore and an offer for sale of up to 4,19,72,660 equity shares.

Objectives for the fresh issue are investment of Rs 42 crore in subsidiaries (namely, FSN Brands/Nykaa Fashion) for funding the set-up of new retail stores, investment of Rs 42 crore in subsidiaries namely (Nykaa E-Retail, FSN Brands and Nykaa Fashion) for funding the set-up of new warehouses, Rs 156 crore for repayment or prepayment of outstanding borrowings, Rs 234 crore for enhancing the visibility and awareness of brands and remaining amount will be used for general corporate purposes.

Promoters of the company are Falguni Nayar, Sanjay Nayar, Falguni Nayar Family Trust and Sanjay Nayar Family Trust. Promoters and promoter group holds an aggregate of 253,354,830 equity shares, aggregating to 54.22% of the pre-offer issued and paid-up equity share capital. The post-IPO shareholding for the same is expected to be around 52.55%.

Ahead of the IPO, FSN E-Commerce Ventures on 27 October 2021 finalized allocation of 2,12,96,397 equity shares to anchor investors at an allocation price of Rs 1125 per share, aggregating to Rs 2395.84 crore

FSN E-Commerce Ventures is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers. The company has a diverse portfolio of beauty, personal care and fashion products, including their owned brand products manufactured by it.

The company`s beauty and personal care offering is extensive with 2,56,149 SKUs (stock keeping unit) from 2,644 brands primarily across make-up, skincare, haircare, bath and body, fragrance, grooming appliances, personal care, and health and wellness categories as of 31 August 2021.

The company reported a consolidated net profit of Rs 3.52 crore and revenue from operations of Rs 816.99 crore as at 30 June 2021.