GMP, Price Financials of Nykaa's Initial Public Offering you sign up for a subscription, there are a few points to note.
Nykaa, India's most popular online marketplace for beauty and personal care items, is slated to go public on October 28 with a massive initial public offering (IPO). Nykaa and Nykaa Fashion are owned by FSN E-Commerce Ventures, which plans to raise Rs 5,352 crore from the Nykaa IPO.
Nykaa, founded in 2012, is one of India's most innovative startups. Nykaa is one of India's few profitable internet retailers, backed by private equity firm TPG and promoted by investment banker Falguni Nayar. Let's look at the important features of Nykaa's Rs 5,353-crore initial public offering.
Dates of Nykaa's Initial Public Offering (IPO):
Those interested in investing in Nykaa's initial public offering should be aware that subscriptions will open on Thursday, October 28 and close on Monday, November 1. On October 27, an anchor book worth up to Rs 2,340 crore would open for a day.
Price of Nykaa's Initial Public Offering (IPO):
For its impending IPO, FSN E-Commerce Ventures has set a price range of Rs 1,085-1,125. Nykaa will raise Rs 5,351.92 crore from the IPO at the top price range, while it will raise Rs 5,184.03 crore at the lower price band.
Issue Size for Nykaa's Initial Public Offering:
Nykaa's IPO consists of a Rs 630 crore new issuance and a Rs 4,721.92 crore offer for sale of up to 4,18,72,660 shares.
Sanjay Nayar Family Trust, the promoters of Nykaa, will sell up to 48 lakh equity shares through an offer for sale. TPG Growth IV SF Pte Ltd, a Singapore-based investor, will sell 54.21 lakh equity shares, while Lighthouse India Fund III will dilute 48.44 lakh equity shares. JM Financial and Investment Consultancy Services would sell 9.14 lakh equity shares, while Yogesh Agencies & Investments Pvt Ltd will sell 25.38 lakh equity shares.
Nykaa's Initial Public Offering (IPO) Quota:
The quota for retail investors in the FSN E-commerce Ventures IPO was set at 10% of the net offer. The quota for qualified institutional buyers (QIB) has been set at 75%, while the quota for non-institutional investors has been set at 50%. (NII)
Nykaa's Initial Public Offering (IPO) Goal:
The net proceeds from the new issue will be used to invest in two subsidiaries as well as open new retail locations. A total of Rs 42 crore will be invested in their companies, FSN Brands and/or Nykaa Fashion, to fund the opening of additional retail outlets. The proceeds from the Nykaa IPO will be used to fund capital expenditures and investments in several of the company's businesses, including Nykaa E-Retail, Nykaa Fashion, and FSN Brands, in order to fund the construction of additional warehouses. In addition, the company would use Rs 156 crore to repay or retire outstanding borrowings taken out by the company and one of its subsidiaries, namely
Grey Market Premium for Nykaa's Initial Public Offering:
According to IPO Watch data, Nykaa shares were trading at a premium of Rs 670 in the grey market. The Nykaa IPO's grey market premium increased by 60% over the higher end of the issue price of Rs 1,125. Nykaa's shares were trading at Rs 1,795 per share on the unlisted market on Tuesday. A healthy listing of shares on the bourses is generally indicated by a rising GMP.
The omnichannel beauty and consumer-care products merchant had a profit of Rs 61.96 crore in FY21, compared to a loss of Rs 16.34 crore the previous year. In the financial year 2020, income from operations was Rs 2,440.89 crore, up 38.10 percent from the previous year. The company's overall GMV was Rs 4,045.98 crore, up 50.7 percent from the previous financial year. In the fiscal year 2021, the EBITDA margin was recorded at 6.61 percent.
The issue's book-running lead managers are Kotak Mahindra Capital, BofA Securities, ICICI Securities, Citibank, Morgan Stanley, and JM Financial. Falguni Nayar, the company's founder, and her family will retain a majority interest.