New Delhi | Jagran Business Desk: Nykaa, an e-commerce beauty giant, is all set to open its initial public offering (IPO) to subscribers on October 28, Thursday, and will conclude on November 1. The IPO consists of a fresh issue of equity share of up to Rs 630 crore and an offer for sale (OFS) of 41,972,660 equity shares by existing shareholders or promoters. The company owned by FSN E-Commerce Ventures Limited said that it has fixed a price band of Rs 1,085 to 1,124 per share for its IPO. Through IPO, Nykaa is planning to raise Rs 5,200 crore from the market.

"We are one of India's leading consumer technology platform... (with) more than 3 million SKUs from 4,000-plus brands and 13 million cumulative transacting consumer base...We do believe that there is a significant headroom available for growth at each level across India's digital use case funnel," Nykaa Executive Chairperson, MD and CEO Falguni Nayar said in a recent press briefing.

As Nykaa is going to open IPO to subscribers from Thursday, here we are with 10 key points that you should know before subscribing to public issue:

IPO Dates

This will be the third-largest IPO after Zomato and Sona Comstar this year. The bidding will start on October 28, 2021, and will conclude on November 1, 2021. Anchor book, if any, will open for a day on October 27.

Fund Raising

FSN E-Commerce plans to mop up Rs 5,351.92 crore and Rs 5,184.03 crore from the lower band.

Price Band

The company, in consultation with the merchant bankers, has fixed the price band at Rs 1,085-1,125 per equity share.

IPO Details

The IPO consists of a fresh issue of equity share of up to Rs 630 crore and an offer for sale (OFS) of 41,972,660 equity shares by existing shareholders or promoters.

As per reports, promoter Sanjay Nayar Family Trust will sell up to 48 lakh equity shares, while investors TPG Growth IV SF Pte Ltd and Lighthouse India Fund III will offload 54.21 lakh and Rs 48.44 lakh equity shares, respectively.

Other shareholders - Sunil Kant Munjal, Lighthouse India III Employee Trust, Narotam Sekhsaria, Harindarpal Singh Banga, along with Indra Banga, Jeenoo Khakhar, Rishabh Mariwala, along with Kanika Khakhar and Isha Khakhar, Michael Carlos, Samina Hamied, Sanjay Maliah, Vikram Sud, and Karan Swani will offload 2.34 crore equity shares.

Key Risks

Before investing, investors will have to consider some key risks such as probable entry of new entities, tough competition, etc.

Posted By: Niharika Sanjeeiv