FSN E-Commerce Ventures Ltd, the parent company of online beauty e-commerce platform Nykaa, hit the primary market on Thursday with India's third-largest initial public offer (IPO) so far in 2021. The company that runs 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 key things investors should know before betting on the issue
IPO dates: The issue, which opened for subscription on October 28, closes 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 shares or in multiples thereof. At the higher end of the price band, one lot is worth Rs 13,500. A retail investor can bid for a maximum of 14 lots.
IPO Details: The offer consists of a fresh issue worth Rs 630 crore and an offer for sale worth Rs 4,721 crore. At the upper end of the price band, the issue size stands at Rs 5,351.92 crore.
Offer for sale will be carried out by promoters and some shareholders. Promoter Sanjay Nayar Family Trust is selling 48 lakh equity shares. And investors TPG Growth IV SF Pte Ltd and Lighthouse India Fund III will sell over 54 lakh and 48 lakh shares, respectively.
Yogesh Agencies & Investments will also sell over 25 lakh equity shares. JM Financial and Investment Consultancy Services will sell over 9 lakh shares.
About the company: FSN E-commerce Venture was incorporated in 2012 and it is the parent company of Nykaa and Nykaa Fashion. It is a digital consumer fashion technology platform that specialises in content-led, retail lifestyle experience. Its portfolio includes beauty, fashion, and personal care products.
The company runs the beauty and personal care segment through Nykaa and the apparel and accessories vertical under Nykaa Fashion. It also operates offline stores with 80 stores across 40 cities of the country.
Objectives of the issue: The company will use net proceeds from the issue to invest in FSN Brands and Nykaa Fashion. It also aims to set up new retail stores for Rs 42 crore. It will also use these proceeds for capital expenditure and investment in subsidiaries like Nykaa E-Retail, Nykaa Fashion and FSN Brands. Further Rs 42 crores will be used for setting up warehouses.
Financials: In June 2021, its revenue grew over 180 percent to Rs 817 crore. Its profit stood at Rs 54.5 crore for the September quarter.
The company reported a growth of over 38 percent in revenue from operations at Rs 2,440 crore in FY21. It also clocked a profit of Rs 61.95 crore for the period under consideration against a loss of Rs 16 crore in the previous year. Its earnings before interest, tax, depreciation, and amortisation rose to Rs 161 crore.
First Published: Oct 27, 2021 11:30 AM IST