Nykaa is revising its new share offering to raise Rs 630 Cr on the IPO

Beauty-centric online marketplace Nykaa has revised its draft Red Hering Prospectus (DRHP) to add Rs 105 crore to the fresh supply. According to regulatory records, the company will now raise Rs 630 billion through a new equity issue.

In August, the company had mentioned in its DRHP that it would raise 525 billion rupees in the upcoming initial public offering (IPO). While media reports estimate Nykaa would raise over $ 500 million (Rs 4,000 billion), its DRHP did not include the actual size of the IPO, valued at around $ 4.5 billion to $ 5 billion (35,000 to 40,000 Rupees).

According to industry circles, the company has received approval from SEBI to be listed on the stock exchange and is expected to debut on the stock exchange later this month.

Nykaa would use the fresh proceeds to set up retail stores and warehouses, fund online businesses, and repay borrowers. Promoters Sanjay Nayar Family Trust and the company’s backers: Lighthouse, TPG Growth, Sunil Munjal and others will dilute their holdings in the planned IPO.

If the company with 4.5-5 billion

Unlike most companies that go public, Nykaa is a profitable company. According to its DRHP, the company had recorded it Rs 61.94 crore profit with operating revenues of Rs 2,440.89 billion for a fiscal year ending March 2021.

The involvement of promoters in Nykaa also differs from other IPO-linked companies. Falguni and Sanjay Nayar and their family trusts own 53% of the company along with several beneficial rights.

Nykaa is also younger than any other consumer internet company scheduled for public listing. Nykaa was founded by Nayyar in 2012, carries out over 60,000 orders every day and claims to have over 15 million registered users. As of the end of FY21, the company has 73 physical stores in 38 cities in India in three different store formats.

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