Nykaa IPO Details Alert 2021

Nykaa IPO Details Alert 2021

Online retailer of beauty products, Nykaa E-Retail Pvt Ltd, is reportedly planning to go public by the end of 2022 that could value the company at $3 billion.

The company founded eight years ago by Falguni Nayar will be the first such to roll out its Initial Public Offering (IPO) plans in the online beauty and fashion segment in India.

With the move, Nykaa will join the league of Flipkart, Zomato, and Pepperfry which are also looking at plans to go public.

As per agency reports, the online beauty retailer is looking to list on the local bourses but an overseas share sale may very well be in the works.

In November, it raised an undisclosed amount from Fidelity Investments Inc giving exit to early investors and employees. The deal valued it at almost $2 billion, according to a news report.

Speaking to ET Now in December, Nayar said, "the company was getting ready for an IPO at some point in future”. She added that Nykaa already had three businesses namely beauty, fashion, and Nykaa Man, and could also look to expand into other categories such as wellness.

The unicorn took a conscious decision to not lay off any employee or cut any salary. Neither did it shut down any one of its 75 stores in India buoyed by robust sales even in lockdown months.

Founded in 2012 by the former investment banker Nayar, Nykaa has emerged as India’s largest online beauty retailer, competing against e-commerce behemoths like Amazon Fashion, Myntra and other niche players. It later entered into offline stores, similar to its competitors like Craftsvilla, Faballey, and others.

Indian companies managed to raise more than Rs 32,000 cr via IPOs in 2020 and market watchers believe 2021 might even be bigger to raise capital in the primary market.

In 2020, six of the major market listings such as Rossari Biotech, Happiest Minds Technologies, Route Mobile, Chemcon Speciality Chemicals, Burger King India, and Mrs Bectors Food Specialities fetched over 50% gains on listing day itself, with three of these doubling on the listing.

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