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FSN E–Commerce Ventures Limited which runs the Nykaa website is an e-commerce company selling beauty and personal care products as well as apparel and accessories.
The company is planning to raise ₹5351.92 crore though an initial public offering. The IPO comprises of fresh issues of shares worth ₹630 crore and offer for sale of ₹4721.92 crore. The face value of each equity share is ₹1.
The IPO opens on October 28, 2021 and closes on November 1, 2021.
Company Summary
The company is a consumer technology platform with a diverse portfolio of beauty, personal care and fashion products, including their own branded products. They have a significant online presence and the company also owns physical stores to cater to offline shoppers.
The company’s online channels are mobile applications, websites and mobile sites. The company had a cumulative downloads of 5.58 crore across all their mobile applications by the end of August 2021 and during the five months ended August 2021, 88.2% of their online gross merchandise value (GMV) came through their mobile applications.
Their offline channel comprises of 80 physical stores across 40 cities in India over three different store formats as of August, 2021.
The company offers approximately 31 lakh SKUs (stock-keeping units) from 4,078 national and international brands to its consumers across business verticals. In the fiscal year 2021, their total GMV was ₹4045.98 crore, which grew 50.7% from the fiscal year 2020.
Nykaa recently acquired a 51% stake in home-grown direct-to-consumer (D2C) brand Dot & Key for ₹97 crore. Some of its earlier acquisitions were women’s styling platform Twenty Dresses and fashion jewellery retailer Pipa Bella.
Company Strengths
- It is one of India’s leading lifestyle focused consumer technology platform and fastest growing fashion platforms in India based on GMV growth.
- The company has the the highest average order value among the leading online beauty and personal care platforms in India
- Availability of a large number of leading luxury and prestige beauty and personal care brands
- Capital efficient business with a combination of strong growth and profitability
- The company has invested in building their own proprietary platform, the Nykaa technology platform
- Ability to take the right decision by leveraging their data analytics capabilities across a large number of data points that includes consumer interactions, product attributes, consumer demographics, marketing campaigns, inventory and pricing.
- Founder-led management team with strong executional capabilities
Company Promoters
Falguni Nayar, Sanjay Nayar, Falguni Nayar Family Trust And Sanjay Nayar Family Trust are the promoters of the company.
Company Financials
|
Particulars |
For the year/period ended (₹ in crore) |
|||
|
30-Jun-21 |
31-Mar-21 |
31-Mar-20 |
31-Mar-19 |
|
|
Total Assets |
1631.48 |
1301.92 |
1124.48 |
775.66 |
|
Total Revenue |
821.71 |
2452.64 |
1777.85 |
1116.38 |
|
Profit After Tax |
3.52 |
61.95 |
(16.34) |
(24.54) |
Purpose of the IPO
The net proceeds from the IPO will be used for the following purposes:
- The company plans to invest ₹42 crore in opening retail stores and certain subsidiaries like FSN Brands and Nykaa Fashion.
- The company will spend ₹234 crore to improve their brand visibility and create awareness. It will also use the proceeds to expand its customer base and create value for existing customers.
- Repayment or prepayment, of outstanding borrowings availed by the company and one of their subsidiaries, namely, Nykaa E-Retail aggregating to ₹156 crore.
- To fund its capital expenditure plans aggregating to ₹42 crore and setting up of warehouses.
IPO Details
IPO Opening Date | Oct 28, 2021 |
IPO Closing Date | Nov 1, 2021 |
Issue Type | Book Built Issue IPO |
Face Value | ₹1 per equity share |
IPO Price | ₹1085 to ₹1125 per equity share |
Market Lot | 12 Shares |
Min Order Quantity | 12 Shares |
Listing At | BSE, NSE |
IPO Lot Size
Application | Lots | Shares | Amount (Cut-off) |
Minimum | 1 | 12 | ₹13,500 |
Maximum | 14 | 168 | ₹189,000 |