Can you tell me about the highlights of the proposed Nykaa IPO that is opening later next week?

The IPO of FSN E-Commerce Ventures (Nykaa) is opening on 28-October and closing for subscription on 01-November. Here are some of the key points to note.

· FSN E-Commerce Ventures, which operates Nykaa and Nykaa Fashion franchises, fixed price band at the range of Rs.1,085-1,125.

· At the upper end of this above band, the company will be valued at Rs.53,200 crore, which is close to $7 billion.

· The overall IPO of Rs.5,352 will comprise of a fresh equity issuance of Rs.630 crore and an offer for sale by promoters and early investors of Rs.4,722 crore. The promoter family will sell 48 lakh shares in the OFS reducing their stake from 54.22% to 52.56%.

· The IPO proceeds will be used by Nykaa to invest in brand building, opening new stores, acquiring additional warehouses and also for repaying or prepaying some of its debt.

· Nykaa was promoted by Falguni Nayar, former MD at Kotak Mahindra Capital. Their stake will be valued at above Rs.28,000 crore at the IPO or $3.6 billion.

· Nykaa has reserved 75% quote for the qualified institutional buyers, 10% for the retail investors and 15% for the non-institutional HNI investors.

· It is one of the rare specimens of profit making digital ecommerce companies in India and it has made profits in FY21 and also in the June quarter.

Nykaa reported gross merchandising value or GMV of $550 million.