Market regulator Securities and Exchange Board of India (SEBI) has given its approval for Nykaa’s Rs 4,000 crore initial public offering (IPO), according to CNBC-TV18.
The company is likely to file an updated draft red herring prospectus with Sebi on Thursday to increase the primary issue size from Rs 525 crore to Rs 630 crore, a report in the Economic Times said, citing banking sources.
#CNBCTV18Exclusive | Sources Say Nykaa receives @SEBI_India approval for its IPO with a size of nearly ₹4,000 cr. Nykaa to raise ₹525 cr via fresh issuance of equity— CNBC-TV18 (@CNBCTV18Live) October 14, 2021
Co likely to be valued at over ₹40,000 cr, reports @YashJain88 pic.twitter.com/aYdbWfs9Fe
The initial public offering (IPO) comprises fresh issue of equity shares worth Rs 525 crore and an offer for sale of 4,31,11,670 equity shares by the selling shareholders, according to draft red herring prospectus (DRHP).
Those selling shares in the OFS include TPG Growth IV SF Pte Ltd, Lighthouse India Fund III, Limited, Lighthouse India III Employee Trust, Yogesh Agencies and Investments and J M Financial and Investment Consultancy Services and Sanjay Nayar Family Trust.
Proceeds of the fresh issue will be used towards investment in certain subsidiaries -- FSN Brands or Nykaa Fashion -- to set-up new retail store, capital expenditure, repayment of debt, to enhance the visibility and awareness of its brands and general corporate purposes.
Founded in 2012, by Falguni Nayar, a former investment banker, the company is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers.
Nayar is a former investment banker and used to specialise in IPOs.
The company has a diverse portfolio of beauty, personal care, and fashion products, including its owned brand products manufactured by it.
The company is looking at bringing in about 20 brands this year. The company at present sells over 850 brands across makeup, skincare, hair care and wellness categories
Kotak Mahindra Capital Company, Morgan Stanley India Company, BofA Securities India, Citigroup Global Markets India, JM Financial and ICICI Securities have been appointed as merchant bankers to advise the company on the IPO.
The equity shares of the company will be listed on BSE and NSE.
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