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FSN E-Commerce Ventures Limitwed IPO (Nykaa IPO) : Details and Highlights

Nykaa Initiated its business operations in 2012. This has been one of the most successful startups as it has already started being profitable within 9 years of its launch. The company’s expertise is in beauty products and a product list is also explained in the previous article regarding Nykaa IPO submission with SEBI. Overall the company has 2 major business segments – Nykaa Fashion and Nykaa. The company has more than 79 stores in India serving retail customers. It is located in 38+ cities across India. The company turned out profitable recently in 2021 March results.

IPO DETAILS

Nykaa IPO is set to launch on 28th Oct., 2021. The subscription timeline extends till 1st Nov, 2021. The size for the IPO is 5351.92 Crore Rs.. Shares issued through Offer for sale are 4721.92 Crore Rs. Shares issued through Fresh issue are worth Rs. 630 Crore. The lot size is 12 shares and the price range is 1085 Rs. – 1125 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Re. 1 and this is a book built issue. The registrar for the company is Link Intime India Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IPO OPENING DATE	28th Oct, 2021
CLOSING DATE FOR IPO	1st Nov, 2021
ISSUE TYPE	Book Built Issue
Face Value per share	1 Re. per share
IPO price band	1085 Rs. – 1125 Rs.
LOT SIZE	12 shares
MINIMUM ORDER QUANTITY	12 shares
ISSUE SIZE	5351.92 Crore Rs.
OFFER FOR SALE	4721.92 Crore Rs.
FRESH ISSUE	630 Crore Rs.
LISTING AT	NSE, BSE
LISTING DATE	11th Nov, 2021

IMPORTANT DATES

IPO OPENING DATE	28th Oct, 2021
CLOSING DATE FOR IPO	1st Nov, 2021
IPO ALLOTMENT DATE	8th Nov, 2021
REFUNDS	9th Nov, 2021
DEMAT A/C CREDITED ON	10th Nov, 2021
IPO LISTING DATE	11th Nov, 2021

The Nykaa IPO or FSN E-commerce ventures Limited IPO begins for subscription from 28th Oct, 2021. The IPO subscription would continue till 1st Nov, 2021. The allotment status for the shareholders who applied would come on 8th Nov, 2021. The refunds for the ones who did not get allotment would be initiated on 9th Nov, 2021. The DEMAT accounts of shareholders would be credited on 10th Nov, 2021. The listing of the company would be accompanied on 11th Nov, 2021.

Lead Managers

The lead managers are :

ICICI Securities Limited
BoFa Securities India Limited
Kotak Mahindra Capital Co. Limited
Morgan Stanley Indian Company Limited
Citigroup Global Markets India Pvt. Ltd.
JM Financial Consultants Private Limited

The minimum lot size for the company is decided at 12 shares. This holding accounts to 13500 Rs.. The maximum lot size is decided at 168 shares. This amounts to Rs. 189000. Hence the company’s final holdings would be set as :

	Shares	Amount
Minimum	12 shares	13500 Rs
Maximum	168 shares	189000 Rs

OBJECTIVES FOR THE IPO

The funds can be utilized for General corporate purposes.
The company is planning to expand itself and become more visible in the eyes of users. Hence It is focusing on developing the technological or online business front along with expanding its Nykaa Fashion vertical.
Nykaa also has a huge debt of 2300+ Million Rs on Nykaa Retail. The same would be fulfilled through this IPO money.

COMPANY FINANCIALS

Particulars (in Million Rs.)	2020-21	2019-20	2018-19
ASSETS	13019	11244	7756
REVENUE	24256	17778	11632
NET PROFIT	619	(-163)	(-245)

Nykaa has a strong figure posted in this quarter. It is a great startup as the profits have started to kick in though the COVID phase was going on. Along with this the asset base of the company is constantly rising and the revenues have been more than proportional which is an excellent sign for a startup. Thus Investing in Nykaa can give great returns in future.

PROS

One of the major reasons for raising money for expansion of the company’s business.
It has an online presence and strong sales on the platform. In the future, online selling is going to be the key in the Thai world.
Nykaa has various products under its portfolio making it a best pick among startups. It also posted its first profitable quarter since inception. This means that the company is ready to give profits to its investors now.

CONS

Nykaa has a huge debt in Retail business which will be paid through IPO money. This will result in a solid decrease in the company’s liquidity for expansion.