Bengaluru: Beauty and Retailer Mode Nykaa has filed a draft red herring prospect for IPO.
It plans to offer fresh equity shares worth RS 525 Crore and offers for sale up to 43 million shares.
Nykaa plans to collect Rs 4,000 Crore from IPO, which will appreciate the company with $ 5 billion – $ 5.5 billion.
Nykaa, who sells online and has 70 physical stores, plans to use the results of the IPO for expansion, by preparing a new retail store and building a new warehouse.
It also plans to retire some of its debts, which must reduce interest costs, and further to the profitability, the archiving said.
Founded in 2012 by Falguni Narggun, Former MD Box Mahindra Capital Company, Nykaa has more than 1,500 brands with a comprehensive choice of makeup, skin care, hair care, fragrances, personal care, luxury and men for women and men.
It has a luxury brand portfolio including Bobbi Brown and Estee Lauder.
Shareholders who sell parts of their shares in offers including Sanjay Nark Nark Trust, private equity company TPG, Lighthouse, JM Financial and Sunil Kant Munjal, chairman of the group hero.
However, most investors do not cash fully, and will continue to maintain several shares in the post-IPO company.
The promoter group and promoter will continue to accommodate more than 51% of the company’s shares after the IPO.
Naga and her husband Sanjay, who is also the Chairman of the Indian Private Equity Equity Company, accommodates around 47% of companies through two family trust.
The company reported RS 62 Crore’s profit for fiscal which ended on March 31, compared to 16 crore Hospital losses in the previous year.
Total income jumped 38% to Rs 2,452 Crore despite last year’s pandemic.
Nykaa said the contribution from Tier 2 and Tier 3 City had increased to 64% by 2020-21, compared with 56.9% in the previous year.
Globally, there is an increase in beauty and the beginning of personalized cosmetics including Ipsy, Fenty Beauty, Morphe, Kylie Cosmetics, and an honest company.
Nykaa also plans to spread the IPO results for marketing and promotion activities, and to strengthen 13 brands including Nykaa cosmetics, Nykaa Naturals and Kay Beauty.
It also plans to build and promote new brands.