The much-awaited initial public offering (IPO) of FSN E-Commerce Ventures Limited, which owns Nykaa, is set to open for subscription on October 28.
The popular online aggregator platform for beauty, personal care, fashion and lifestyle products plans to raise approximately Rs 5,200 crore, according to sources quoted in a livemint.com report.
Meanwhile, anchor investors will be able to bid for the company’s shares to the tune of Rs 2,340 crore just a day before the public issue goes live for subscription.
The Nykaa IPO will open for subscription on October 28 and investors will be able to bid for the company’s shares till November 1.
The tentative price band for the issue is Rs 1,120-Rs 1,125 and the lot size is 13, according to chittorgarh.com. The company has not yet officially confirmed the price band.
It may be noted that the firm has increased its fresh issuance to Rs 630 crore from Rs 525 crore. The offer for sale (OFS) size has been reduced to 41.97 million shares from 43.11 million shares.
The lead book running managers for the issue are Kotak Mahindra Capital, Morgan Stanley India, Bofa Securities, Citigroup Global Markets India, ICICI Securities and JM Financial.
As per ipowatch.com, the latest grey market premium for the Nykaa IPO is Rs 670, indicating that the public issue is set for a bumper opening.
The allotment of shares is likely to be finalised on November 8 and the tentative listing date is November 11.
The company plans to use the proceeds from the IPO to invest in certain subsidiaries, aimed at setting up new retail stores and warehouses.
Nykaa will allocate Rs 35 crore from the issue to invest in its subsidiaries FSN Brands or Nykaa Fashions for the retail stores, as per livemint.com. The company will also use the proceeds for capital expenditure, repayment of certain borrowings and enhancing visibility and awareness of brands.
Investors and analysts remain optimistic about the Nykaa IPO as it is a leading player in the online beauty aggregator segment. It was founded by investment banker Falguni Nayar in 2012. It has a wide range of product offerings, including beauty and lifestyle products, apparel, accessories and more.
The fact that Nykaa provides an omnichannel shopping experience for customers is one of its biggest advantages.
Customers can either order online through the mobile app, website or visit the company’s offline stores located in approximately 38 cities. The availability of major products and brands on Nykaa’s platform is another reason for its rapidly growing popularity.