Monday, August 2, 2021

Nykaa files DRHP with Sebi, to raise Rs 525 crore via fresh equity

 Promoters and investors selling shares via OFS upto 43.1 million


Beauty aggregator platform Nykaa filed its draft red herring prospectus (DRHP) with market regulator Sebi. According to the DRHP, the company is raising Rs 525 crore via fresh equity. Promoters and investors will be selling up to 43.1 million equity via an offer for sale.

The DRHP did not mention the total size of the IPO. According to media reports the company is planning to raise Rs 4,000 crore in the IPO and sources said the company is seeking a valuation between Rs 35,000 crore to Rs 40,000 crore.

Those opting to sell via OFS include promoters Sanjay Nayar Family Trust, and investors such as TPG Growth IV, Lighthouse India Fund III, Lighthouse India III Employee Trust, JM Financial, and Investment Consultancy, Sunil Kant Munjal, and others.

The company stated that it intends to use the funds raised via fresh equity sale to make investments in its subsidiaries, namely, FSN Brands and/or Nykaa Fashion for funding the set-up of new retail stores; for capital expenditure of Nykaa E-Retail, Nykaa Fashion, and FSN Brands for funding the set-up of new warehouses; repayment or prepayment, in full or in part, of certain borrowings availed by the company; for expenditure to enhance the visibility and awareness of our brands; and general corporate purposes.

Nykaa had raised Rs 100 crore in 2020 from existing investors Steadview Capital and its valuation was then pegged at $1.2 billion.

According to the DRHP, Nykaa’s revenue from operations in the Financial Year 2021 was Rs 24,40.89 crore, which grew 38.10% from the Financial Year 2020. Its restated profit for the year in the Financial Year 2021 was Rs 61.94 crore, as compared to a restated loss of Rs 16.34 crore for the Financial Year 2020. It reported EBITDA of Rs 1,614.26 million and an EBITDA margin of 6.61% in the Financial Year 2021.

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