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How To Apply For Nykaa IPO

INTRODUCTION:

On 03rd August 2021, India's famous beauty, personal care, and lifestyle retailer FSN E-Commerce Ventures Limited, popularly known as "Nykaa", filed its Draft Red Herring Prospectus (DHRP) with SEBI for issuance of Initial Public Offering.

Why are investors keen on an IPO of a leading company?

Leading companies are based on a successful business model. They usually have plans for business expansion and growing their customer base. If you invest in an IPO of a leading company, its share prices will mostly have an upward trend in the market, thus offering you handsome returns in the future. Recently, the IPO of Zomato created hype amongst many investors—with its shares getting oversubscribed.

The year 2021 has seen a surge of IPOs in the market. In August, India's leading beauty and personal care retailer filed its draft prospectus for insurance of IPO. The Nykaa IPO has created a buzz in the market amongst many investors.

If you are interested in Nykaa's IPO, it is essential that you first learn a few things about the company.

About Nykaa's IPO: An Overview on the Company:

FSN E-Commerce Ventures Limited ("Nykaa") is an e-commerce entity founded in 2012 by ex-investment banker Flaguni Nayar. The company was initially incorporated as 'FSN E-Commerce Ventures Private Limited.' It is a lifestyle and wellness-based digital platform, offering beauty products and personal care to its consumers. They provide services for online shopping to their customers. In the past few years, Nykaa has expanded its business to include shopping of other home-related products. It has also expanded offline by opening stores across many cities in India. Due to the covid-19 induced lockdown, the company's online shopping app has seen an exponential rise in the last two years. With its delivery based app, the company has grown its customer base with over 1.5 million users. Nykaa is the only listed company offering services in this sector. Their unique business model has created publicity about their IPO in the market.

How to apply for Nykaa's IPO: Steps involved while applying for an IPO:

Nykaa has announced that it is ready to go public by year-end or at the start of next year, 2022. Its IPO would be seen as a great investment opportunity. The tentative Nykaa IPO date is the latter half of the year 2021 or the beginning of 2022.

To apply for Nykaa's IPO, here are a few basic steps you need to follow:

·  Through your net banking or any trading account that supports UPI:

Nykaa's IPO can be applied through your net banking or any online trading platform/app that supports UPI. Once you log in to your net banking or any bank or online trading platform, you must select the IPO to subscribe button. After that, enter details such as quantity in lot size and the price, and hit the submit button. Like any other online transaction, accept the terms and conditions and click on proceed.   

·  Your Demat Account:

Investing in IPO is similar to investing in shares. You can apply for Nykaa's IPO through your Demat account with your registered broker or bank. If you are a new investor, open your Demat account with a Depositary Participant (DP). Login to your Demat account, enter details of subscription and, confirm to place your order.

·  Application Supported by Blocked Amount (ASBA):

ASBA is a facility through which investors can be applied for an IPO. Using this interface, you can block your funds in your bank account for subscribing to an IPO. This way, you won't be able to use the blocked amount for any other purpose. However, you will continue to earn interest on this blocked amount.

Additional reads: https://www.icicidirect.com/knowledge-center/article//all-you-need-to-know-about-ipo-application-process          

CONCLUSION:

The application process for Nykaa's IPO will be similar to that of any other IPO application process. The Nykaa IPO date has been tentatively launched as 2021-2022. You can apply for its IPO either online or offline.

Disclaimer

ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470.  Please note, IPO related services are not Exchange traded products and I-Sec is acting as a distributor to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.

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