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Nykaa IPO: What GMP signals ahead of issue opening for subscription

A Nykaa store in New Delhi, India (Bloomberg) — A Nykaa store in New Delhi, India **(Bloomberg)**

2 min read . Updated: 26 Oct 2021, 10:10 AM IST Livemint

Nykaa IPO will be open for subscription on Thursday, October 28 and will conclude on Monday, November 1

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E-commerce beauty giant Nykaa will open its initial public offering (IPO) to subscribers on Thursday, aiming for a total valuation of over $7 billion. Founded by former investment banker Falguni Nayar, the woman-led unicorn offers 4,000 beauty, personal care and fashion brands through its website, app and 80-odd brick-and-mortar stores.

The IPO will open for subscription on October 28 and conclude on November 1. It comprises of equity shares aggregating up to ₹630 crore (fresh issue) and an offer for sale (OFS) of up to 41,972,660 equity shares by promoters or existing shareholders.

As per market observers, Nykaa shares are available at a premium (GMP) of ₹610 in the grey market today, indicating a good response for this IPO, they believe. Its shares are expected to list on November 11 on the leading stock exchanges BSE and NSE.

Bids can be made for a minimum of 12 equity shares and in multiples of 12 equity shares thereafter. The offer includes a reservation of up to 250,000 equity shares for purchase by eligible employees. Promoters, including CEO Falguni Nayar, currently own more than 50% in the company.

"We are one of India's leading consumer technology platform... (with) more than 3 million SKUs from 4,000-plus brands and 13 million cumulative transacting consumer base...We do believe that there is a significant headroom available for growth at each level across India's digital use case funnel," Nykaa Executive Chairperson, MD and CEO Falguni Nayar said in a recent press briefing.

The company proposes to use the proceeds from the IPO towards acquiring and retaining customers by enhancing the visibility and awareness of its brands, repayment of outstanding borrowings availed by the company and one of its subsidiaries, setting up new retail stores and setting up new warehouses.

Nykaa had posted a net profit of ₹61.9 crore in FY21 compared to a loss of ₹16.3 crore in FY20. Its revenue from operations jumped to ₹2,441 crore from ₹1,768 crore.

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