Cosmetics Retailer Nykaa Files Papers With SEBI For INR 4000 Cr IPO

Bangalore, India.

Beauty and fashion retailer Nykaa has filed a draft red herring prospectus for an IPO. It plans to offer fresh equity shares worth Rs 525 crore and an offer for sale of up to 43 million shares. Nykaa plans to raise Rs 4,000 crore from the IPO, which would value the company at USD 5 billion- USD 5.5 billion.

Nykaa, which sells online and has 70 physical stores, plans to use the proceeds from the IPO for expansion, by setting up new retail stores and establishing new warehouses. It also plans to retire some of its debt, which should bring down interest costs, and further shore up its profitability, the filing said.

Founded in 2012 by Falguni Nayar, a former MD of Kotak Mahindra Capital Company, Nykaa has over 1,500 brands with a comprehensive selection of makeup, skincare, haircare, fragrances, personal care, luxury and wellness products for women and men. It has a portfolio of luxury brands including Bobbi Brown and Estee Lauder.

The shareholders who are selling a part of their stake in the offering include Sanjay Nayar Family Trust, private equity firm TPG, Lighthouse, JM Financial and Sunil Kant Munjal, chairman of Hero Group. However, most of the investors are not cashing out completely, and will continue to retain some stake in the company post-IPO. The promoter and promoter group will continue to hold more than 51% of the company’s shares after the IPO.