Beauty startup Nykaa gets ready for IPO, files DRHP with SEBI

Nykaa, formally known as FSN E-Commerce Ventures Ltd has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial share sale. Nykaa's IPO follows food-delivery company Zomato Ltd's successful debut on the stock exchanges last month. The company wants to be valued at more than $4 billion.

Morgan Stanley, BofA Securities, and Citigroup are among the lead book-running managers for the proposed IPO.

Merchant bankers, Kotak Mahindra Capital Company, Morgan Stanley India Company, BofA Securities India, Citigroup Global Markets India, JM Financial, and ICICI Securities have been appointed.

According to its draught red herring prospectus, the entity stated that it would raise up to $70.6 million by selling new equity in the offering (DRHP).

The DRHP further stated that the initial public offering (IPO) comprises a fresh issue of equity shares worth Rs 525 crore and an offer for sale of 4,31,11,670 equity shares by the existing shareholders.

The offer-for-sale (OFS) will be participated in by the promoter Sanjay Nayar Family Trust, as well as investors such as TPG Growth IV SF Pte. Ltd, Lighthouse India Fund, J M Financial, Investment Consultancy Services, and Yogesh Agencies & Investments Private Ltd.

Sunil Kant Munjal, Harindarpal Singh Banga, Indra Banga, and Michael Carlos, the former president of Swiss fragrance maker Givaudan are among the other selling shareholders.

The proceeds of the new issue will be used to invest in certain subsidiaries — FSN Brands or Nykaa Fashion — to open new retail stores, capital expenditure, debt repayment, increasing brand visibility and awareness, and general corporate purposes.

Nykaa, headquartered in Mumbai, India, which was founded in 2012 by Falguni Nayar, is a digital native, consumer technology platform that provides consumers with a content-led, lifestyle retail experience.

The company has a diverse portfolio of beauty, personal care, and fashion products, as well as its own brand products that it manufactures.

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