The DRHP did not mention the total size of the IPO, but it is estimated to be around INR 4000 crore. As per the media reports, the IPO will comprise fresh issues of upto INR 525 crore and an offer of sale (OFS) of upto 4.3 crore shares by existing shareholders.As a mandatory process before filing for DRHP, the startup recently converted itself into a public company, as reported earlier by Indiaretailing.
Backed by investors such as TPG Growth, Lighthouse Funds, Fidelity Management and Research Company among others, the startup has raised a total of around INR 520 crores till date. Nykaa turned profitable in FY2019, recording a revenue of 1100+ crore. It maintained its growth in FY20, showcasing a revenue increase by 60 per cent.
Founded in 2012, by Falguni Nayar, the company boasts of over 1500 brands in its portfolio. Nykaa’s offline channel comprises 73 physical stores across 38 cities in India over three different store formats as of March 31, 2021. As per the prospectus, the company also had cumulative downloads of 43.7 million across all of its mobile applications.
Kotak Mahindra Capital, ICICI Securities, Citibank, BofA Securities, Morgan Stanley and JM Financial are among the appointed managers for its public issue.
With this step, Nykaa has joined the list of other Indian companies which are going public this year: MobiKwik, Devyani International, Paytm among others. Zomato has already received a huge response to its IPO earlier this year.