The company’s IPO will have equity shares worth Rs 4,721 crore as an offer for sale (OFS) by existing investors and the promoter.
Representational image. News18
The Initial Public Offering (IPO) of FSN E-Commerce Ventures Ltd, the parent company of the fashion brand Nykaa, opened today, 28 October. The company, is looking to raise Rs 5,352 crore in the primary market through the IPO. The Nykaa IPO, which has a fixed price band per share of Rs 1,085 to Rs 1,125, will close on 1 first November.
The company’s IPO will have equity shares worth Rs 4,721 crore as an offer for sale (OFS) by existing investors and the promoter.
The remaining Rs 630 crore will include fresh issue of equity shares. Promoter Sanjay Nayar Family Trust and shareholders TPG Growth IV SF Pte Ltd, Limited, Lighthouse India III Employee Trust, Lighthouse India Fund III, Yogesh Agencies & Investments, J M Financial and Investment Consultancy Services, as well as some individual shareholders, will put their shares on OFS.
In the grey premium market, the shares were trading at around Rs 650-650 per shares.
Nykaa is one of the fastest growing fashion and lifestyle brands in the country, with a revenue of Rs 817 crore in June this year. In this year’s September quarter, it registered a profit of Rs 54.5 crore. Its parent company, FSN E-Commerce Ventures, was established by Falguni Nayar in 2012.
Investors can bid for the shares in a bid lot of 12 Nykaa shares, which means each investor will have a minimum investment of Rs 13,500. Qualified institutional buyers (QIB) have 75 percent of the IPO issue reserved for them, while 10 percent is for retail investors and 15 percent is for non-institutional investors.
While public shareholding in the company will increase from 45.8 percent to 47.4 percent after the issue, promoter shareholding will fall from 54.2 percent to 52.6 percent.
The share allotment is likely to happen on 8 November this year, with the shares being listed on 11 November, according to Indian Express. The stocks will be listed on both the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE).
FSN E-Commerce Ventures Ltd will use the net proceeds from the IPO for investment in Nykaa Fashion and FSN Brands. It also aims to use the money for setting up new retail stores for Rs 42 crore, apart from capital expenditure and investment in subsidiaries.
For the IPO, Link Intime India is the registrar of the issue, while JM Financial, Bofa Securities India, ICICI Securities, Kotak Mahindra Capital, Citigroup Global Markets India and Morgan Stanley India are the book running lead managers to the offer.
Before the IPO, FSN E-Commerce Ventures raised over Rs 2,395 crore from 174 anchor investors, which included JP Morgan, HDFC, ICICI Blackrock, Fidelity, Nomura, and Abu Dhabi Investment Authority. The money was raised as a replacement of 2,12,96,397 equity shares, which were priced at Rs 1,125 per share.
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