Nykaa Initiated its business operations in 2012. This has been one of the most successful startups as it has already started being profitable within 9 years of its launch. The company’s expertise is in beauty products and a product list is also explained in the previous article regarding Nykaa IPO submission with SEBI. Overall the company has 2 major business segments – Nykaa Fashion and Nykaa. The company has more than 79 stores in India serving retail customers. It is located in 38+ cities across India. The company turned out profitable recently in 2021 March results.
IPO DETAILS
Nykaa IPO is set to launch on 28th Oct., 2021. The subscription timeline extends till 1st Nov, 2021. The size for the IPO is 5351.92 Crore Rs.. Shares issued through Offer for sale are 4721.92 Crore Rs. Shares issued through Fresh issue are worth Rs. 630 Crore. The lot size is 12 shares and the price range is 1085 Rs. – 1125 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Re. 1 and this is a book built issue. The registrar for the company is Link Intime India Private Limited.
TABULAR REPRESENTATION OF IPO DETAILS
| IPO OPENING DATE | 28th Oct, 2021 |
| CLOSING DATE FOR IPO | 1st Nov, 2021 |
| ISSUE TYPE | Book Built Issue |
| Face Value per share | 1 Re. per share |
| IPO price band | 1085 Rs. – 1125 Rs. |
| LOT SIZE | 12 shares |
| MINIMUM ORDER QUANTITY | 12 shares |
| ISSUE SIZE | 5351.92 Crore Rs. |
| OFFER FOR SALE | 4721.92 Crore Rs. |
| FRESH ISSUE | 630 Crore Rs. |
| LISTING AT | NSE, BSE |
| LISTING DATE | 11th Nov, 2021 |
IMPORTANT DATES
| IPO OPENING DATE | 28th Oct, 2021 |
| CLOSING DATE FOR IPO | 1st Nov, 2021 |
| IPO ALLOTMENT DATE | 8th Nov, 2021 |
| REFUNDS | 9th Nov, 2021 |
| DEMAT A/C CREDITED ON | 10th Nov, 2021 |
| IPO LISTING DATE | 11th Nov, 2021 |
The Nykaa IPO or FSN E-commerce ventures Limited IPO begins for subscription from 28th Oct, 2021. The IPO subscription would continue till 1st Nov, 2021. The allotment status for the shareholders who applied would come on 8th Nov, 2021. The refunds for the ones who did not get allotment would be initiated on 9th Nov, 2021. The DEMAT accounts of shareholders would be credited on 10th Nov, 2021. The listing of the company would be accompanied on 11th Nov, 2021.
Lead Managers
The lead managers are :
- ICICI Securities Limited
- BoFa Securities India Limited
- Kotak Mahindra Capital Co. Limited
- Morgan Stanley Indian Company Limited
- Citigroup Global Markets India Pvt. Ltd.
- JM Financial Consultants Private Limited
The minimum lot size for the company is decided at 12 shares. This holding accounts to 13500 Rs.. The maximum lot size is decided at 168 shares. This amounts to Rs. 189000. Hence the company’s final holdings would be set as :
| Shares | Amount | |
| Minimum | 12 shares | 13500 Rs |
| Maximum | 168 shares | 189000 Rs |
OBJECTIVES FOR THE IPO
- The funds can be utilized for General corporate purposes.
- The company is planning to expand itself and become more visible in the eyes of users. Hence It is focusing on developing the technological or online business front along with expanding its Nykaa Fashion vertical.
- Nykaa also has a huge debt of 2300+ Million Rs on Nykaa Retail. The same would be fulfilled through this IPO money.
COMPANY FINANCIALS
| Particulars (in Million Rs.) | 2020-21 | 2019-20 | 2018-19 |
| ASSETS | 13019 | 11244 | 7756 |
| REVENUE | 24256 | 17778 | 11632 |
| NET PROFIT | 619 | (-163) | (-245) |
Nykaa has a strong figure posted in this quarter. It is a great startup as the profits have started to kick in though the COVID phase was going on. Along with this the asset base of the company is constantly rising and the revenues have been more than proportional which is an excellent sign for a startup. Thus Investing in Nykaa can give great returns in future.
PROS
- One of the major reasons for raising money for expansion of the company’s business.
- It has an online presence and strong sales on the platform. In the future, online selling is going to be the key in the Thai world.
- Nykaa has various products under its portfolio making it a best pick among startups. It also posted its first profitable quarter since inception. This means that the company is ready to give profits to its investors now.
CONS
- Nykaa has a huge debt in Retail business which will be paid through IPO money. This will result in a solid decrease in the company’s liquidity for expansion.
FSN E-Commerce Ventures Limited (NYKAA) IPO APPLICATION PROCESS WITH ZERODHA
It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :
- Logging into Zerodha console through its website or KITE platform.
- Clicking the IPO link present in the Portfolio section
- Click the NYKAA IPO button and press the BID button
- Entering the details asked for like UPI ID, Quantity and price
- Submit the application form of IPO
- Visiting the application of UPI for approving the transaction
Now, applying for an IPO online is possible with most of the Discount and online brokers.
