The initial public offering (IPO) of FSN E-commerce Ventures, which operates beauty and fashion firm Nykaa, will open on October 28 with the equity shares being offered in the price band of Rs 1,085 to Rs 1,125 apiece.
The public issue will comprise of a fresh issue of shares worth Rs 630 crore and an offer for sale (OFS) component totalling around Rs 4,722 crore, thereby pegging the total issue size at Rs 5,352 crore at the upper end of the price band.
Existing shareholders of the company who would be offering their shares as part of the OFS in the public issue include TPG Growth IV SF Pte, Lighthouse India Fund III, Lighthouse India III Employee Trust, J M Financial and Investment Consultancy Services and Yogesh Agencies & Investments, as per the information available in the draft document of the company.
Data from the prospectus further shows that the company registered a profit of Rs 61.95 crore in the financial year 2020-21 (FY21) after seeing a loss in the two previous financial years. The fiscals FY19 and FY20 saw a net loss of Rs 24.54 crore and Rs 16.34 crore, respectively.
Nykaa is one of the many start-up ventures looking to list in the public markets at a time when the secondary markets are trading near record highs. The Indian benchmark indices -- S&P BSE Sensex and Nifty -- are among the top performers globally in terms of returns in the current calendar year.
Apart from Nykaa, IPOs of online majors like PayTM, Policybazaar, Ixigo, MobiKwik and Oyo are also in the pipeline, with their issues expected to hit the markets soon.
Nykaa's IPO issue will be managed by some of the biggest merchant banking firms of the country, including Kotak Mahindra Capital, Morgan Stanley India, Bank of America Securities, Citigroup Global Markets India, ICICI Securities and JM Financial. The issue will close for subscription on November 1.
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