Beauty and fashion retailer Nykaa is planning to go public in 2022 at a valuation of $ 4.5 billion (Rs 32,850 crores). According to a report in The Mint, the planned valuation witnesses a sharp rise from the company’s last valuation of $ 3 billion (Rs 21,900 crores). Nykaa, however, will keep the size of the public offer listing unchanged, at between $500 million and $700 million.
This sharp rise in the company’s proposed valuation is being credited to gains made by the enterprise with the shift of customers to online purchase because of the disruption caused by the COVID- 19 pandemic. Speaking to The Mint, a source close to the company’s plans added that Nykaa is looking to file its first draft of the red herring prospectus by this June end or early July. The IPO is expected to get listed in the March quarter of this year.
The public offer made by Nykaa will be offered for sale to provide an exit to the existing investors of the company. While the price band of the offer is yet to be decided, the source added that 10-20 per cent of the company’s stake could be offered to the public for an adequate free flow.
The beauty retailer has designated Kotak Mahindra Capital Co. and Morgan Stanley as managers for its public offering.
The company was founded one years back, with women as its major clients. So far, the platform caters to approximately 15 million registered users, with1.5 million orders a month. Nykaa is one of the very few start-up brands that are profitable already.
Apart from Nykaa, several other startups including Paytm, Zomato and Policy Bazaar are planning to go for a public listing. Paytm is expected to launch its IPO in the latter part of 2021. The company aims to raise $ 3 billion from its listing in the market.
Meanwhile, delivery platform Zomato has filed its preliminary papers for an IPO with the market regulators Security and Exchange Board of India (SEBI) to raise USD 1.13 billion.
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