Nykaa looks to go public at a valuation of $4.5 billion, says report

Beauty products retailer Nykaa is planning to go public later this fiscal at a valuation of $4.5 billion, a significant increase from its previous valuation of over $3 billion, reported Livemint. The development comes as the beauty retailing startup has benefitted during the pandemic which led to a shift towards online sales.

The IPO size remains unchanged at $500-$700 million, the report said, citing two people directly aware of the discussions.

"The roadshows are on for the IPO (initial public offer), and FSN Ecommerce Ventures Pvt. Ltd, the holding company of Nykaa, will file its draft red herring prospectus by this June-end or early July, and the IPO should take off in the March quarter of this fiscal," one of the persons mentioned was quoted as saying in the report.

It was reported in January this year that the startup was looking at a valuation of $3 billion for the IPO. A rise in the revenue and profit of the company, mainly driven by more consumers shifting to online shopping, has led to an increase in Nykaa's overall valuation, a source told the paper.

“The public offer will be coupled with an offer for sale to provide an exit to existing investors. The price band is yet to be decided, but a 10-20% stake of the firm could be offered to the public for an adequate free-float," one of the sources told Mint.

When contacted by the paper, a Nykaa spokesperson refused to comment on the story.