Indian startups have been growing at a massive pace, with more than 30 companies attaining the unicorn status in 2021 (so far). This also means that early market disruptors are now maturing, and a lot of companies are now going public, including Zomato, Paytm and many more. Now, the list will include omni-channel beauty and consumer-care products retailer Nykaa, after the start-up received the green light from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO), a report from Entrackr states.
The report claims that the company will now raise around ₹630 crores through a fresh issue of equity shares after it revised its draft red herring prospectus (DRHP) to increase the size of the fresh offer by ₹105 crores.
The IPO will also include an offer for sale (OFS) in which existing shareholders will sell up to 43.1 million shares. It is likely that Nykaa may enter the stock exchange by the end of this month. With the IPO, the startup is likely to be valued at over ₹40, 000 crores.
According to the startup, the proceeds would be utilized towards expansion and setting up new retail stores and warehouses, funding online operations, and repaying borrowers. The Sanjay Nayar Family Trust will sell 48 lakh shares while other investors, including TPG, Light House India Fund, JM Financials, Yogesh Agencies, Sunil Kant Munjal, Harindarpal Singh Banga, Narotam Sekhsaria, Narotam Sekhsaria, and Mala Gaonkar, will dilute their stakes. However, Nayar and family will continue to own the majority stake.
What makes the nine-year-old Nykaa unique among the startups that are going public in recent times? Founded by former investment banker Falguni Nayar, it has over 1,500 brands in its portfolio, including leading luxury labels like Bobbi Brown, L’Occitane, and Estee Lauder. It is also one of the few profitable start-ups to make its debut in the stock exchange this year – it recorded ₹1,860 crores in revenue in FY20 and a net profit of ₹61.9 crores in FY21.