Online beauty marketplace Nykaa will open for public subscription on October 28, the company filed its red herring prospectus with the markets regulator Securities and Exchange Board of India (SEBI). The three-day offering would close on November 1.
The marketplace had received SEBI's approval for commencing the initial share sale of October 11.
The equity shares of the company would be listed both on NSE and BSE.
The IPO comprises a fresh issue of equity shares worth Rs 630 crore and an offer for sale of about 4.19 crore shares by the promoter and existing shareholders.
The previous issue size was Rs 525 crore.
Nykaa intends to use the proceeds from the IPO for further expansion by means of setting up new retail stores and establishing new warehouses, the draft papers stated. Additionally, it intends to retire some of the debt, which would potentially help bring down interest costs and further up profitability. This, alongside deploying the proceeds for marketing and promotional activities in order to strengthen its in-house brands such as Nykaa Cosmetics, Nykaa Naturals and Kay Beauty.
Those selling shares in the OFS include promoter Sanjay Nayar Family Trust and shareholdersTPG Growth IV SF Pte Ltd, Lighthouse India Fund III, Limited, Lighthouse India III Employee Trust, Yogesh Agencies & Investments, JM Financial and Investment Consultancy Services and some individual shareholders.
FSN E-Commerce Ventures was founded in 2012 by Falguni Nayar as a digitally based content-led retail marketplace. It now has a diverse portfolio of beauty, personal care and fashion products inclusive of its in-house brands sold via its business verticals, Nykaa and Nykaa Fashion. The company is one of the leading influential lifestyle platforms in India with over 12.6 million followers across leading social media platforms as of March 2021.
The company has reported a net profit of Rs 61.94 crore for FY21 compared to a net loss of Rs 16.34 crore in FY20. Its revenue from operations jumped to Rs 2,441crore in FY21 from Rs 1,768 crore in FY20.