FSN E-Commerce Ventures Ltd, which runs online marketplace for beauty and wellness products Nykaa, has fixed a price of Rs 1,085-1,125 a share for its Rs 5,352-crore initial public offering, which will open on October 28.
The three-day initial public offering will conclude on November 1, according to the red herring prospectus (RHP).
The IPO comprises a fresh issue of equity shares worth Rs 630 crore and an offer for sale (OFS) of 41,972,660 equity shares by promoter and existing shareholders, it added.
Earlier, the fresh issue size was Rs 525 crore.
Those selling shares in the OFS are -- promoter Sanjay Nayar Family Trust and shareholders -- TPG Growth IV SF Pte Ltd, Lighthouse India Fund III, Limited, Lighthouse India III Employee Trust, Yogesh Agencies & Investments, J M Financial and Investment Consultancy Services and some individual shareholders.
As per the information available with the BSE on Friday, the price band has been fixed at Rs 1,085-1,125 a share for the IPO. At the upper end of the price band, the initial share-sale is expected to fetch Rs 5,352 crore.
The company received Sebi's go-ahead on October 11 to launch the initial share-sale.
Going by the draft papers, the company plans to use the proceeds from the IPO for expansion, by setting up new retail stores and establishing new warehouses.
It also plans to retire some of its debt, which should bring down interest costs and further shore up its profitability.
In addition, the company is planning to deploy the proceeds of the IPO for marketing and promotional activities, to focus on strengthening its 13 owned brands such as Nykaa Cosmetics, Nykaa Naturals and Kay Beauty, along with establishing and promoting new brands.
FSN E-Commerce Ventures Ltd, which is founded in 2012 by Falguni Nayar, is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers.
The company has a diverse portfolio of beauty, personnel care and fashion products, including its own manufactured brand products, under its two business verticals – Nykaa and Nykaa Fashion.
The company has reported a net profit of Rs 61.94 crore for FY21 compared to a net loss of Rs 16.34 crore in FY20. Its revenue from operations jumped to Rs 2,441 crore in FY21 from Rs 1,768 crore in FY20.
It clocked nearly 57 per cent compound annual growth rate (CAGR) in gross merchandise value from FY19-FY21, and over 48 per cent CAGR in revenue terms from FY19-FY21.
The company is one of the leading influential lifestyle platforms in India with over 12.6 million followers across leading social media platforms as of March 2021.
Kotak Mahindra Capital Company, Morgan Stanley India Company, BofA Securities India, Citigroup Global Markets India, JM Financial and ICICI Securities are merchant bankers to the issue.
The company's equity shares will be listed on the BSE and the National Stock Exchange (NSE).