FSN E-Commerce Ventures (Nykaa) IPO subscribed 1.55 times

The offer received bids for 4,09,73,280 shares as against 2,64,85,479 shares on offer.

The initial public offer (IPO) of FSN E-Commerce Ventures (Nykaa) received bids for 4,09,73,280 shares as against 2,64,85,479 shares on offer on Thursday (28 October 2021), according to stock exchange data at 17:00 IST. The issue was subscribed 1.55 times.

The issue opened for bidding on Thursday (28 October 2021) and it will close on Monday (1 November 2021). The price band of the IPO is fixed at Rs 1,085 - 1,125 per share. An investor can bid for a minimum of 12 equity shares and in multiples thereof.

The IPO comprises of up to 4,75,75,326 equity shares of face value of Rs 1 each of FSN E-Commerce Ventures for cash at a price of Rs 1,125 per equity share (including a share premium of Rs 1,124 per equity share) aggregating up to Rs 5,349.70 crore, comprising of a fresh issue of up to 56,02,666 equity shares aggregating up to Rs 630 crore and an offer for sale of up to 4,19,72,660 equity shares aggregating up to Rs 4,719.70 crore by the selling shareholders.

The offer includes a reservation of up to 2,50,000 equity shares (constituting up to 0.05% of the post-offer paid-up equity share capital) for purchase by eligible employees (the employee reservation portion). The offer less the employee reservation portion is hereinafter referred to as the net offer. The offer and the net offer would constitute 10.06% and 10.01%, respectively, of post-offer paid-up equity share capital.

The Rs 5,349.70 crore IPO consisting of fresh issue of Rs 630 crore and OFS of Rs 4,719.70 crore (from promoters and other investors) would result in reduction of promoter's stake to 52.6% post-IPO from 54.2% pre-IPO. The funds raised will be utilized for setting up new retail stores/warehouses, debt repayment and marketing.

Ahead of the IPO, FSN E-Commerce Ventures on 27 October 2021 finalized allocation of 21,296,397 equity shares to anchor investors at an allocation price of Rs 1125 per share, aggregating to Rs 23,95,84,46,625.

FSN E-Commerce Ventures is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers. Since the incorporation of company in 2012, they have invested both capital and creative energy towards designing a differentiated journey of brand discovery for their consumers. The company has a diverse portfolio of beauty, personal care and fashion products, including their owned brand products manufactured by them.

The company's beauty and personal care offering is extensive with 2,56,149 SKUs from 2,644 brands primarily across make-up, skincare, haircare, bath and body, fragrance, grooming appliances, personal care, and health and wellness categories as of 31 August 2021. The company has entered into manufacturing agreements with several manufacturers in India, for the manufacture of such products which are sold under their owned brands such as 'Nykaa Cosmetics', 'Nykaa Naturals' and 'Kay Beauty.' The company opened its first physical store in 2014, and have as of 31 August 2021, 80 physical stores across 40 cities.

The company reported a consolidated net profit of Rs 3.52 crore and revenue from operations of Rs 816.99 crore as at 30 June 2021.

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