Nykaa IPO to open on October 28 at Rs 1,085-1,125 price band

The initial public offering (IPO) of FSN E-Commerce Ventures, the holding company of omnichannel personal care and fashion brand Nykaa has been priced in the range of Rs 1,085-1,125 per equity share.

The IPO of Nykaa will open on October 28 and close on November 1, while the trading on the stock exchanges will commence from November 11.

Nykaa will become the third Indian startup to go public this year after Zomato and Freshworks.

The share allotment will be finalised on November 8, with refunds to be given on November 9 and shares will come into the demat account on November 10.

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The IPO comprises a fresh issue of Rs 630 crore and an offer for sale (OFS) of Rs 4.197 crore worth of equity shares by the promoters and investors. It is expected to raise around Rs 5,200 crore.

Nykaa was founded by Falguni Nayar, and is backed by private equity firm TPG.

The IPO will see promoter Sanjay Nayar Family Trust sell up to 48 lakh equity shares, investors TPG Growth IV SF Pte Ltd will offload over 54.21 lakh shares, and Lighthouse India Fund III will sell 48.44 lakh shares through the OFS. There are 16 shareholders who are sellers.

Ecommerce beauty brand Nykaa is among the few profitable startups in the Indian startup ecosystem. It reported a net profit of Rs 61.96 crore for FY21 as compared to a loss of Rs 16.34 crore in the comparable previous fiscal.

Nykaa's revenues touched Rs 2,453 crore in FY21, recording a 38 percent year-on-year growth as compared to the previous fiscal.

Nykaa had earlier said it would use the proceeds of the IPO towards repayment of its debt, marketing its brands, opening retail stores and new warehouses etc.

Though it started as an online marketplace, it later turned into an omnichannel platform where it now has around 80 stores across 40 cities over three different formats.

As of August 2021, it offered approximately 3.1 million SKUs (stock-keeping units) from 4,078 national and international brands across business verticals.