Nykaa IPO

 

Nykaa has quickly risen to become India’s largest omnichannel cosmetics hub with millions of satisfied clients around the region since its launch in 2012. Falguni Nayar, a previous investment banker established the brand Nykaa. Nykaa IPO will hit the market on 28 October 2021.

Services

They go above and beyond to bring client’s favourite products and keep them up to date on the hottest fashion innovations expert tips, and videos, with over 68 Luxe and On-Trend Outlets, an ever-growing internet platform for beauty buffs, and a Beauty Helpline.

It offers a vast range of cosmetics, skincare, hair care, fragrances, personal care, luxurious, and wellness items for females and males, with over 1200 100% authentic products and six warehouses around India that store lakhs of well-curated, well-priced items.

Nykaa is genuinely enthusiastic about contributing to their client’s every beauty and wellbeing need, from the biggest range of authentic beauty items from all over the globe to beauty tips.

Origin

Nykaa, which is originated from the Sanskrit term ‘Nayaka,’ which means actress or one who is in the spotlight, is all about honoring the star in every female and being her confidante and partner as she focuses on her own path to explore her special personality and individual style.

They outsource third-party manufacturers to create their own brand beauty and personal care goods.

They have manufacturing agreements in place with many manufacturers in India for the production of items sold under their own trademarks such as “Nykaa Cosmetics,” “Nykaa Naturals,” and “Kay Beauty.”

Their owned brands can be found on their online and offline platforms, as well as on some third-party apps.

Values

They believe that the Nykaa female requires nothing but the finest, purest, and most reliable health and cosmetics items that money can purchase. They have aspired to set the standard in product reliability management since their inception, ensuring that their clients receive only 100% authentic and new items.

Unlike certain digital retailers they never buy from the black market and only sell items that are 100 percent genuine and come straight from the manufacturers or certified suppliers.

This credibility pervades every aspect of their organization and they’re constantly improving our systems to ensure they’re still providing the best. After all, it’s their client’s Beauty that they’re passionate about.

Nykaa IPO

FSN E-commerce ventures limited, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of a fresh issue of Rs 525 crore and ofs of 43,111,670 equity shares on 01 August, 2021.

There will be fresh issue of Rs 525 crore & OFS (Offer for sale) of upto 43,111,670 equity shares from existing Promoters mentioned in the DRHP of the company.

They are got the for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market on 14 Oct 2021.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
		31-Mar-21	31-Mar-20	31-Mar-19
Total Assets		1,301.99	1,124.48	775.66
Total Revenue		2,452.64	1,777.85	1,116.38
Profit After Tax		61.95	(16.34)	(24.54)

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	1.33	1.33	3
Financial Year 2020	(0.38)	(0.38)	2
Financial Year 2019	(0.58)	(0.58)	1
Weighted Average	0.44	0.44

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

The following are among the basic criteria and key strengths that contribute into determining the Offer Price:

• One of India’s biggest retail technology platforms with a lifestyle focus.
• For buyers and brands in India, they are the premier destination for premium and prestige goods.
• Resilient, capital-efficient company with a solid growth and earnings track record.
• Our in-house technology stack.
• The founder-led company backs up by expert management team.

Nykaa IPO Peer Comparison

There are no publicly traded companies in India that operate in a similar industry to theirs. As a result, providing an industry comparison in regard to their Company is not possible.

Nykaa IPO Details

IPO Opening Date	28 October 2021
IPO Closing Date	01 November 2021
Issue Type	Book Builting
Face Value	1 per  share
IPO Price	1085 to 1125 per equity share
Market Lot	12
Min Order Quantity	12
Listing At	BSE, NSE
Issue Size	5351.92 Cr
Fresh Issue	525 Crore
Offer for Sale	43,111,670 Equity Shares

Nykaa IPO Tentative Date

The Nykaa IPO opening date is 29 October 2021, and the closing date is 01 November 2021. The issue may list in 11 November 2021.

IPO Open Date	28 October 2021
IPO Close Date	01 November 2021
Basis of Allotment Date	09 November 2021
Initiation of Refunds	10 November 2021
Credit of Shares to Demat Account	10 November 2021
IPO Listing Date	11 November 2021

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	75	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	10	Minimal level of 1 lot, based on availability, for every shareholder.

Nykaa IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Nykaa IPO.

Nykaa IPO GMP

Nykaa Grey Market Premium Today is INR 753.

Date	GMP (in Rs)	Subject to Sauda	Kostak
09 November 2021	753	6300	600
08 November 2021	686	5700	550
07 November 2021	666	4100	400
06 November 2021	648	5100	500
05 November 2021	639	4700	450
04 November 2021	654	3400	350
03 November 2021	643	4300	400
02 November 2021	625	4200	400
01 November 2021	565	2800	250
31 October 2021	575	3100	300
30 October 2021	590	3300	300
29 October 2021	640	4100	400
28 October 2021	645	4800	500
27 October 2021	635	4400	450
26 October 2021	655	3800	350
25 October 2021	605	4300	400
24 October 2021	600	5000	500
23 October 2021	680	1100	100
22 October 2021	700	–	–

Nykaa IPO Review

If you are looking for answer to your question Nykaa IPO is good or bad here is the answer. You should subscribe this IPO for both view long term and listing gains.

The business model of the company is simply brilliant. Management is fantastic.

There are possibilities that this IPO can double your money even from listing price within a year.

Nykaa IPO Risk

• They may not be able to boost revenue if they are unable to attract new customers or do it in a cost-effective manner.
• Any damage to their brand or reputation could have a negative impact on their business.
• The sale of their own items exposes them to new risks and increases the severity of others.
• They operate in an extremely competitive sector, and their inability to compete successfully could affect their bottom line.
• Health epidemics, such as the current COVID-19 pandemic, have had and may continue to have a negative impact on their business, activities, and markets.
• Changing rules in India may result in new, complex compliance obligations.

Other Threats

• Any efforts to expand internationally could expose them to complicated management, legal, tax, and economic risks, all of which could harm their business.
• Their business would suffer if they were unable to continue to develop or if they were unable to react to developments in their industry.
• They purchase inventory in expectation of sales, and if They fail to efficiently manage their inventory, their business may suffer.
• Their business’ seasonality has an impact on their quarterly performance and puts a burden on their operations.
• Several lawsuits have been filed against their company, its subsidiaries, and some of its directors. Any negative outcome in these proceedings could have a negative impact on their company.
• In the financial years 2019 and 2020, they made losses.

Investments & acquisition

Nykaa has raised $145.9 million in 12 rounds of funding. Their most recent investment came from a Secondary Market session on November 26, 2020.

It is backed by a group of 15 investors. The most recent lenders are Fidelity Management and Research Company and Alia Bhatt.

It has purchased two businesses. Pipa. Bella was their most recent takeover on April 12th, 2021.

Sales

There are doing both online and offline sales growth in recent years.

• Online

Mobile applications, websites, and mobile sites are among our online outlets. We have 43.7 million cumulative downloads across all of their mobile applications as of March 31, 2021, and their mobile applications accounted for 86.7 percent of their online GMV in Fiscal Year 2021. According to the RedSeer Report, among the main online retail platforms in India in 2021, we will have the biggest share of mobile application-led transactions.

• Offline

As of March 31, 2021, their offline channel consists of 73 actual locations spread over 38 cities in India, with three main store formats. Their physical stores provide a limited selection of products as well as a seamless experience that spans both the physical and online worlds.

Brands

As of March 31, 2021, they had 197,195 SKUs from 2,476 brands in the beauty & personal care category, primarily in the make-up, skincare, haircare, bath & body, fragrance, grooming appliances, personal care, and health & wellness areas.

As a consequence, they believe their brand has been associated with cosmetics in India. Domestic and international brands, luxury and prestige brands, premium brands, niche and cult brands are all part of their portfolio.

Their portfolio’s breadth, along with their knowledge of customers’ needs and preferences, allows them to customise their offerings even as they serve a more diverse clientele. In India, they have re-defined the art of e-retailing beauty.

Industry Growth

The retail industry in India is predicted to increase from 54.8 trillion in 2020 to around 91.2 trillion in 2025. They also have a big market potential in India’s developing beauty, personal care, and fashion industries, which will total 10.6 trillion (US$152 billion) by 2025.

From 1.1 trillion (US$16 billion) in the calendar year 2020, the Indian beauty and personal care market is expected to rise to nearly 2.0 trillion (US$28 billion) by the calendar year 2025.

From 3.8 trillion (US$54 billion) in the calendar year 2020, the Indian fashion market is expected to increase to around 8.7 trillion (US$124 billion) by the calendar year 2025.

Business Model

We run their beauty and personal care business primarily on the basis of inventory. This method assures that products are sourced directly from brands or authorised distributors in the nation.

This helps them to ensure the authenticity of products offered to customers, which is a crucial issue for them. They can ensure availability and timely delivery by using an inventory-led methodology.

They launched the Nykaa Man mobile app and website, tailoring their model and experience for men while also expanding education and awareness about the usage of grooming and personal care products among guys.

Nykaa Luxe, Nykaa On Trend, and Nykaa Kiosks are the three types of physical stores they currently have.

Nykaa IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Nykaa IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
28 October 2021	1	1.40	0.60	3.51	0.68	1.56
29 October 2021	2	4.77	4.18	6.34	1.18	4.86
01 November 2021	3	91.18	112.02	12.24	1.88	81.78

Management

Their founder-led management team has helped them achieve long-term business success. Falguni Nayar, their Founder, Executive Chairperson, Managing Director, and Chief Executive Officer, founded the company in 2012.

She is motivated by a desire to change India’s traditional and transactional lifestyle e-commerce models. She has been the driving factor behind the company’s development and expansion.

Her customer awareness, intuitive entrepreneurship, and involvement in critical facets of their business have all contributed to their profitable growth.

To fuel their growth, Falguni is supported by a competent management team that shares her vision and values.

Promoters

• Falguni Nayar
• Sanjay Nayar
• Falguni Nayar Family Trust
• Sanjay Nayar Family Trust

Promoter Holding

Pre Issue Share Holding	48.05%
Post Issue Share Holding