Nykaa Files IPO Papers, Plans To Raise Rs 4000 Crore At Valuation Of Over $5 Billion

E-commerce company Nykaa is all set to go public and has filed in its draft red herring prospectus (DRHP) to raise Rs 4000 crore via its upcoming initial public offering (IPO).

The beauty retailer will offer fresh equity shares amounting to Rs 525 crore. It will also issue an offer for sale (OFS) for about 43 million shares.

The company targets to achieve a valuation of around $5 billion-$5.5 billion through the IPO.

Nykaa is aiming to use the IPO to initiate new retail stores and warehouses along with further steering its expansion plans. As per the filing, the company will also retire a certain part of its debt in order to cut down the costs of interest in order to bolster its profitability.

It will also divert the IPO proceeds towards promotional and marketing activities and further reinforce its 13 brands including the likes of Kay Beauty, Nykaa Cosmetics and Nykaa Neutrals which it owns.

The Sanjay Nayar Family Trust, JM Financial, Sunil Kant Munjal, Lighthouse and TPG are amongst the shareholders who will sell a part of their stake in the coming offering, Times of India reports.

However, the promoter and its group will still own over 51 per cent of Nykaa’s shares following the IPO, as a large majority of investors will continue to hold on to some of their stakes even after the company goes public.