Cosmetics retailer Nykaa has filed its draft red herring prospectus (DRHP) with capital marketplace regulator SEBI to launch an IPO. The public problem comprises fresh problem of shares worth Rs 525 crore, whilst the promoters and investors will sell up to 4.31 crore equity shares by way of give for sale (OFS). Selling shareholders consist of promoters Sanjay Nayar Family Trust, and investors such as TPG Growth IV, Lighthouse India Fund III, Lighthouse India III Employee Trust, Yogesh Agencies & Investments Private Limited, JM Financial and Investment Consultancy Services, Sunil Kant Munjal, Harindarpal Singh Banga jointly with Indra Banga and other people.
There are no listed firms in India that engage in a enterprise equivalent to that of Nykaa. Kotak Mahindra Capital Company, Morgan Stanley India Company Private Ltd, BofA Securities India, Citigroup Global Markets India Private Ltd, ICICI Securities, and JM Financial. Link Intime India Private Ltd will be the registrar to the problem. The corporation has planned to utilise the net proceeds towards funding the investment in particular of its subsidiaries, namely, FSN Brands and/or Nykaa Fashion for funding the set-up of new retail retailers worth Rs 35 crore capital expenditure to be incurred by the corporation and investment in particular of its subsidiaries, namely, Nykaa E-Retail, FSN Brands and Nykaa Fashion for funding the set-up of new warehouses worth Rs 35 crore repayment or prepayment of outstanding borrowings availed by the corporation and one of its subsidiaries, namely, Nykaa E-Retail worth Rs 130 crore Rs 200 crore expenditure to improve the visibility and awareness of its brands and for basic corporate purposes.
The promoters of the corporation are Falguni Nayar, Sanjay Nayar, Falguni Nayar Family Trust and Sanjay Nayar Family Trust. The weighted typical return on net worth for the last 3 fiscals stood at .68 per cent. India has the second-biggest urban population in the world. India will continue to develop across the digital use-case funnel, as there is considerable headroom for development at each and every level. This development is anticipated to be driven by the affordability of the net, continuous improvement in telecommunications infrastructure, enhanced adoption from Tier 2+ cities, the increasing reputation of social media, competitively priced on the internet offerings and expanding trust and adoption of on the internet payment platforms.
The quantity of on the internet shoppers in India reached 150-180 million in 2020 (up from 120-150 million in 2019) with roughly 70% of these shoppers belonging to the non- Metro cities. These shoppers invest in a wide variety of goods on the internet ranging from mobiles, electronics, style, beauty and private care and groceries. The Beauty and Personal Care Market in India was sized at Rs 1,267 billion in 2019, expanding at a CAGR of 13 pet cent in the last 3 years. Though the marketplace fell down to Rs 1,120 billion in 2020 as a outcome of decreased spending for the duration of the 1st COVID-19 wave, it is projected to develop at a CAGR of 12 per cent to attain Rs 1,981 billion in 2025 implying a CAGR of 7.7 per cent from the pre-COVID-19 marketplace in 2019.