According to sources, Securities and Exchange Board of India (SEBI) has approved Nykaa’s Rs 4,000 crore initial public offering (IPO) on October 14. It further added that the online beauty retail startup is likely to be valued at over Rs 40,000 crore.
Nykaa is looking to raise Rs 525 crore via fresh issuance of equity, which will be primary shares. Besides, the company is also looking at secondary share sale of 43.1 million shares.
Most of the Rs 4,000 crore raised from the IPO will be used to pay existing investors – the likes of Sanjay Nayar, TPG, Lighthouse and Sunil Munjal – selling their stakes.
Nykaa is one of the most unique startups to be hitting the public markets in India and has been one of the only profitable unicorns going public. It is also one of India’s only new-age firms where even after a billion dollar valuation, its promoter group owns more than half the company.
Founded in 2012 by former investment banker Falguni Nayar, Nykaa is a leading destination for beauty products, armed with its own chain of physical outlets. It has posted a revenue of Rs 1860 crore in fiscal 2020.
Nykaa now boasts of over 1,500 brands in its portfolio, including leading luxury labels like Bobbi Brown, L’Occitane and Estee Lauder. It has even opened 68 brick and mortar stores in the country.
Kotak Mahindra Capital, Bofa Securities, Citi, JM Financial, Morgan Stanley and ICICI Securities are the i-bankers working on the IPO.
