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FSN E-COMMERCE VENTURES LTD (NYKAA)

IPO Details

ICICI Direct Research Rating : UNRATED
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12 shares
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₹ 1085 - 1125
₹ Upto 5350 cr

Timeline

  • 08-Nov-2021
  • 09-Nov-2021
  • 10-Nov-2021
  • 11-Nov-2021

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

About Company

Nykaa is a  digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers. They have a diverse portfolio of beauty, personal care and fashion products, including their owned brand products manufactured by Nykaa. Since incorporation in 2012, they have invested both capital and creative energy towards designing a differentiated journey of brand discovery for their consumers. 

Strengths & Risks

Strengths (3)

Diverse portfolio of owned brands

Nykaa has crafted a portfolio of 13 owned brands, including brands such as : Nykaa Cosmetics, Nykaa Naturals, Kay Beauty, Twenty Dresses, Nykd by Nykaa, Pipa Bella. 

Risks (2)

Inability to manage growth or execute strategies may impact future business plans

To support the expansion plans, the company may have to implement a variety of new and upgraded managerial, operating, technology etc. which in turn may lead to higher costs and oversight by management.

Financials

Industry Overview

Indian Beauty and Personal Care (BPC) Market: Beauty and Personal Care Market in India was sized at Rs. 1,267 billion in 2019, growing at a CAGR of 13% in the last 3 years.

Growth in BPC Spend by Youth: Consumers in the 25-35 years age group are the most active BPC buyers. The customers are also more inclined to buy prestige products. The buying behavior of these consumers is different from that of a traditional Indian shopper.

Increasing BPC Spend from Non-Metro Cities: There has been an increase in aspirational spending on BPC products especially in non-Metro cities enabled by rising disposable income, aided by an increasing female workforce participation, increasing popularity and growing influence of social media, and lifestyle changes.

*The financials mentioned above are sourced from DRHP/ RHP documents.