FSN E-Commerce Ventures Ltd, the parent company of online beauty e-commerce platform Nykaa, is expected to hit the primary market on Thursday with India’s third largest initial public offering (IPO) in 2021. The company that manages Nykaa and Nykaa Fashion aims to raise over Rs 5,350 crore, promoted by Falguni Nayar and backed by private equity firm TPG.
Here are the top things investors should know before betting on the issue.
IPO dates: The issue will open for subscription on October 28 and close on November 1, 2021.
Price band: The lower limit of the band is Rs 1,085 and the upper limit is Rs 1,125.
Lot size: Investors can bet on a lot of 12 stocks or in multiples thereof. At the high end of the price range, a lot is worth Rs 13,500. A retail investor can bid for up to 14 lots.
Details of the IPO: The offer consists of a new issue worth Rs 630 crore and a sell offer worth Rs 4,721 crore. At the high end of the price bracket, the issue size stands at Rs 5,351.92 crore.
The sale offer will be made by the promoters and certain shareholders. The promoter Sanjay Nayar Family Trust sells 48 lakh capital shares. And investors TPG Growth IV SF Pte Ltd and Lighthouse India Fund III will sell more than 54 lakh and 48 lakh shares respectively.
Yogesh Agencies & Investments will also sell over 25 lakh shares. JM Financial and Investment Consultancy Services will sell more than 9 lakh shares.
About the company: FSN E-commerce Venture was incorporated in 2012 and is the parent company of Nykaa and Nykaa Fashion. It is a digital consumer fashion technology platform specializing in the content-driven retail lifestyle experience. Its portfolio includes beauty, fashion and personal care products.
The company manages the beauty and personal care segment through Nykaa and the clothing and accessories vertical segment under Nykaa Fashion. It also operates offline stores with 80 stores in 40 cities nationwide.
Objectives of the issue: The company will use the net proceeds from the issuance to invest in FSN Brands and Nykaa Fashion. It also aims to create new retail stores for Rs 42 crore. It will also use these products for capital expenditures and investments in subsidiaries such as Nykaa E-Retail, Nykaa Fashion and FSN Brands. Another Rs 42 crore will be used for setting up warehouses.
Financial: In June 2021, his income increased by over 180% to Rs 817 crore. Its profit stood at Rs 54.5 crore for the September quarter.
The company reported over 38% growth in operating income to Rs 2,440 crore in fiscal year 21. It also reported a profit of Rs 61.95 crore for the reporting period against a loss. of Rs 16 crore the previous year. Its earnings before interest, taxes, depreciation and amortization reached Rs 161 crore.