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Nykaa operator raises Rs 2,396 crore from anchor investors ahead of IPO –

Nykaa and Nykaa Fashion operator FSN E-Commerce Ventures on October 27 mopped up Rs 2,396 crore from 174 anchor investors ahead of its initial public offering. The offer will open for subscription on October 28.

The company in consultation with merchant bankers has finalised allocation of 21,296,397 equity shares to anchor investors, at Rs 1,125 per share, the upper end of the price band, as per a BSE circular.

Marquee investors participated in the anchor book included Blackrock Global Funds, BEST Investment Corporation, Emerging Markets Growth Fund, Fidelity Funds,  Government Of Singapore, Canada Pension Plan Investment Board, T Rowe Price, JP Morgan, Aberdeen Abu Dhabi Investment Authority, CLSA, Goldman Sachs, and Monetary Authority of Singapore.

Domestic investors including Aditya Birla Sun Life Trustee, SBI Mutual Fund, HDFC Trustee Company, Nippon Life India Trustee, Axis Mutual Fund, Kotak MF, ICICI Prudential, Franklin MF, Sundaram MF, IDFC MF, L&T MF, Tata MF, Edelweiss, and UTI MF also invested in the company, through anchor book.

Out of the total allocation to anchor investors, 70,98,801 equity shares or 33.33 percent shares were allocated to 21 domestic mutual funds through a total of 93 schemes, said the company. Total fundraising from these mutual funds was Rs 798.61 crore.

FSN E-Commerce Ventures, a multi-brand beauty, personal care and fashion platform, plans to raise Rs 5,351.92 crore through its maiden public offering which comprises a fresh issue of Rs 630 crore and an offer for sale of Rs 4,721.92 crore by several selling shareholders including promoters and investors.

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The price band for the offer has been fixed at Rs 1,085-1,125 per share. The issue will close on November 1.

Private equity firm TPG and banker-turned businesswoman Falguni Nayar-backed firm will utilise net proceeds from fresh issuance for investment in two subsidiaries — FSN Brands and/or Nykaa Fashion – and for setting up new retail stores (Rs 42 crore). Further, the funds will also be utilised for capital expenditure and investment in subsidiaries, like Nykaa E-Retail, Nykaa Fashion and FSN Brands, and for setting up warehouses (Rs 42 crore). Apart from that, the company will also use funds for repaying debts of itself and its subsidiary Nykaa E-Retail (Rs 156 crore), and to enhance brand awareness and visibility (Rs 234 crore).

Also read – Nykaa IPO opens on October 28: 10 key things to know before subscribing to the issue

The company has a diverse portfolio of beauty, personal care and fashion products, including their own brand of products manufactured by them. Nykaa operates under 2 major business verticals namely Nykaa (beauty and personal care products) and Nykaa Fashion (apparel and accessories). It has offered approximately 3.1 million SKUs (stock-keeping units) from 4,078 national and international brands to its consumers across two business verticals.

Under the beauty and personal care vertical, FSN manufactures its own brand of beauty and personal care products through third-party manufacturers. They are sold under brand names such as Nykaa Cosmetics, Nykaa Naturals and Kay Beauty.

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