Online beauty marketplace Nykaa's ꦗparent compa❀ny FSN Commerce Ventures fixed a price band of Rs 1,085 to Rs 1,125 per share for its initial public offer (IPO) for its initial public offering that is scheduled to open on October 28.
The three-day publicဣ offering would close on November 1.
The company's offering would have a fresh issue of equity shares totalling up to Rs 630 crore and an offer forꦓ sale of about 41.9 million equity shares offered by the selling shareholders inclusive of promoter selling shareholders. Additionally, the employee reservation position, which refers to a specified number of shares being reserved for purchase by eligible employees, has been kept at up to 250,000 equity shares.
Last week, Nykaa had announced that it would open for public subscription on October 28. It had stated that it intends to use the proceeds from the IPO for further expansion by setting up new reᩚᩚᩚᩚᩚᩚᩚᩚᩚ𒀱ᩚᩚᩚtail stores and establishing new warehouses, its red herring draft papers stated.
Additionally, it intends to retire some of the debt, which would potentially help bring down interest costs and further up profitability. This, alongside deploying the proceeds for market♓ing and promotional activities in order to strengthen its in-house brands such as Nykaa Cosmetics, Nykaa Naturals and Kay B♕eauty.
Meanwhile, Falguni Nayar, the founder and CEO at Nykaa, told Moneycontrol the company has a large shareholding- from high net worth to funds. In fact, it had an internal path to listing and this listing gav🦂e independence to the company’s shareholders to🍰 exit and enter the stock when they want to.
Nayar added that the company aims to establish more lifestyle sections and wants to become a household name rather than just a multi-brand retailer. As for global expansion, the retailer w🔯ants to venture into the Middle East and U♏K markets.
