Beauty aggregator platform Nykaa on Monday filed its draft red herring prospectus (DRHP) with the market regulatory body Securities Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
FSN E-Commerce Ventures Ltd, owner of Nykaa is seeking to raise Rs. 525 crores through the IPO, while investors and promoters are planning to sell shares worth Rs 4.31 crores via offer for sales (OFS).
Promoter Sanjay Nayar Family Trust will sell Rs. 48 lakh worth share. Other promoters who opted to sell their shares through OFS include TPG Growth IV, Lighthouse India Fund III, Lighthouse India III Employee Trust, JM Financial and Investment Consultancy, Sunil Kant Munjal.
One of the promoters told The Economic Times “Primarily, it will be an offer for sale (OFS) by initial investors and about 10-15% of the offered size is a fresh issue,”
The company stated that it intends to use the funds raised via fresh equity sale to make investments its subsidiaries, namely, FSN Brands and/or Nykaa Fashion for funding the set-up of new retail stores, Business Standard reported.
Nykaa was founded by Falguni Nayar in 2012. Falguni Nayar Family Trust and Sanjay Nayar Family Trust hold 22.33% and 25.72% stake, respectively, in the firm.
As of March 2021, Nykaa had cumulative downloads of 43.7 million across all its mobile applications.
