Investment banking sources told ET that lifestyle retailer Nykaa, which plans to raise Rs 5,000 crore, will likely file its draft red herring prospectus (DRHP) by this weekend. Policybazaar will file its DRHP next week for a Rs 6,000-crore IPO.
Falguni Nayar-founded Nykaa, a multi-brand beauty and personal care platform in India, is looking at a valuation of about Rs 30,000 – 32,000 crore. “Primarily, it will be an offer for sale (OFS) by initial investors, and about 10 per cent of the offered size is a fresh issue. The company does not need funds as it has utilised only half of the $70 million it raised so far, and the balance is lying in cash,” said one of the persons quoted above. “The promoter would be selling only a small portion and will hold the majority stake after the IPO.”
TPG Growth, Steadview Capital, Fidelity, and Hero Group chairman Sunil Kant are some of the investors in Nykaa. The company has appointed investment banks such as Kotak Mahindra Capital, Citibank, ICICI Securities, Morgan Stanley, and Bank of America to manage its public issue.
On July 16, the company changed its status from a private company to public by changing the name from FSN e-commerce Ventures Private Limited to FSN e-commerce Ventures Limited.
Nykaa would be the fourth startup to file its DRHP after Zomato, Paytm, and MobiKwik Systems. Paytm has filed DRHP for an IPO to raise Rs 16,600 crore and Mobikwik has filed for a Rs 1,900-crore IPO this month.
Zomato’s IPO was subscribed 40.38 times earlier this month, generating demand of Rs 2.13 lakh crore, the most in 11 years and the third-highest in Indian capital market history. The IPO of a loss-making startup set a record for anchor investors and drew the second-highest number of applications received.
Nykaa is among the only few profit-making etailers in India. It turned EBITDA positive in FY19 with FY20 EBITDA of Rs 80 crore with a margin of 5 per cent. The company has grown revenues by more than 100 per cent CAGR over FY17-20 to reach Rs 1,800 crore.
According to market sources, SoftBank-backed Policybazaar is also filing its DRHP next week and is looking to raise up to Rs 6,000 crore through an IPO. The Policybazaar IPO is expected to be a mix of fresh shares and an offer for sale through which existing investors can exit.
The startup, which operates as a web aggregator for purchasing retail insurance, reported a loss of Rs 218 crore in FY20 against a loss of Rs 213 crore in the previous year.
Email queries sent to Nykaa and Policybazaar went unanswered.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
