Nykaa to launch IPO on October 28, over 41 million shares up for grabs; check key details

By Team Newsable | First Published Oct 22, 2021, 5:55 PM IST

The company seeks a valuation of around $7.4 billion in the IPO and aims to raise as much as Rs 5,200 crore. The proceeds will be used by the company to repay debt and to market its products.

The much-awaited initial public offering (IPO) of FSN E-Commerce Ventures Limited, which owns Nykaa, will open for subscription on October 28 and close on November 1 at a price band of the share sale at Rs 1,085-1,125 apiece.

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.

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The company seeks a valuation of around $7.4 billion in the IPO and aims to raise as much as Rs 5,200 crore. The proceeds will be used by the company to repay debt and to market its products.

Currently, company founder Falguni Nayar and her family hold more than 53 percent stake in FSN. She is expected to continue being the largest shareholder even after the IPO.

“Following this investment by Nykaa, Dot & Key will join Nykaa’s stable of owned brands,” according to a statement released on Friday.

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Founded by Suyash Saraf and Anisha Saraf, Dot & Key makes skincare products such as serums, face masks, toners and cleansers. The brand recently expanded into nutraceuticals under the brand ‘IKWI’, whose products are dermatologically tested and cruelty free.

“We are excited to bring Dot & Key into the Nykaa family in time to serve the demand in high quality skincare by Indian consumers,” Nayar said. “Its product range presents an exciting opportunity for Nykaa as it allows us to extend the brand’s reach to a larger landscape of consumers and enter the nutraceutical space as well.”

Investors and analysts remain optimistic about the Nykaa IPO as it is a leading player in the online beauty aggregator segment. 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.

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