Beauty product startup Nykaa is going to bring an IPO of about Rs 525 crore. Nykaa’s parent company has filed a preliminary document i.e. DRHP with SEBI for this. FSN E-Commerce Ventures Ltd., which runs Nykaa. According to this, it will issue new shares worth Rs 525 crore while existing shareholders will sell 4.31 equity shares.
These investors will sell their stake
The shareholders who will sell their equity include promoters Sanjay Nair family and investors TPG Growth IV, Lighthouse India Fund III, JM Financial (JM Finacial and Investment Consultancy Services), Sunil Kant Munjal, Harinderpal Singh Banga and Other investors including Indra Banga are involved. Kotak Mahindra Capital Company and Morgan Stanley. BofA Securities India, Citigroup Global Markets, ICICI Securities and JM Financial, Link Intime Pvt Ltd will be the registrars to the issue.
Founder Falguni Nair to sell 10% stake
According to Bloomberg News, Nykaa’s founder Falguni Nair wants to increase the valuation of her company to Rs 3000 crore. He intends to sell more than 10 per cent stake. Nykaa was founded in 2012 by Falgun Nair, an investment banker. The preparation for IPO is going on in full swing. In the next few days, the company and the investment bankers will together decide the outline of the IPO. According to initial reports, Kotak Mahindra Capital Company and Morgan Stanley could be potential investment bankers for the IPO.
Huge demand for start-up IPO after the success of Zomato
Nykaa has emerged as a major startup selling beauty products. It has its own physical outlets. Its revenue in the financial year ended March, 2021 was more than Rs 2400 crore. After the tremendous success of Zomato’s IPO, interest in startup stocks has increased a lot. Zomato is the first unicorn to be listed on the Indian stock market. So far, the price of this share has increased by 80 percent. After Zomato, Policybazaar, an online platform that sells insurance policies, has also filed draft papers for the IPO. The company will raise capital of more than Rs 600 crore. Looking at this trend, a dozen technology companies can bring IPO by next year.