About the Company:
FSN E-Commerce Ventures Ltd (NYKAA) is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers.
Company is a diverse portfolio of beauty, personal care and fashion products, including owned brand products manufactured by us.
Company has established itself not only as a lifestyle retail platform, but also as a popular consumer brand.
Company’s lifestyle portfolio spans across beauty, personal care and fashion products.
As of March 31, 2021, company offered approximately 2.0 million SKUs from 3,826 national and international brands to consumers across business verticals.
Online Business:
Company’s online channels include mobile applications, websites and mobile sites.
As of March 31, 2021, company had cumulative downloads of 43.7 million across all our mobile applications and during the Financial Year 2021, 86.7% of our online GMV came through our mobile applications.
Company has one of the highest share of mobile application-led transactions, among the leading online retail platforms in India during Financial Year 2021.
Offline Business:
Company’s offline channel comprises of 73 physical stores across 38 cities in India over three different store formats as of March 31, 2021. The physical stores offer a select offering of products as well as a seamless experience across the physical and digital worlds.
Company’s physical retail stores:
Despite being a consumer technology platform, company has recognized the importance of physical retail as an offering channel for beauty and personal care products early on.
Company opened the first physical store in 2014, and have as of March 31, 2021, 73 physical stores across 38 cities.
Company’s physical stores currently exist in three formats, Nykaa Luxe, Nykaa On Trend and Nykaa Kiosks and are developed to cater to a specific consumer demographic and need of the local market.
Company’s business verticals:
Nykaa: Beauty and personal care.
Company’s beauty and personal care offering is extensive with 197,195 SKUs from 2,476 brands primarily across make-up, skincare, haircare, bath and body, fragrance, grooming appliances, personal care, and health and wellness categories.
Company’s portfolio includes domestic brands, international brands, luxury and prestige brands, premium brands, niche and cult brands.
Introduced in 2012, the Nykaa mobile application and website grew rapidly over the years to attain a significant market share of online beauty and personal care market in 2021.
Company is the largest Specialty Beauty and Personal Care Platform in India in terms of value of products sold in the Financial Year 2021.
Nykaa Fashion: Apparel and accessories.
Company had launched Nykaa Fashion in 2018, as a curated and managed marketplace with an endeavor to inspire consumers to make fashion and lifestyle choices that best suit them.
Company has a wide assortment of offerings, across price points, to cater to women, men and children of diverse demographics.
Company offers a mix of brands across established national brands, international brands, luxury brands, and emerging labels and designers.
As of March 31, 2021, Nykaa Fashion housed 1,350 brands and over 1.8 million SKUs with fashion products across four consumer divisions: women, men, kids and home.
The average value of Orders on Nykaa Fashion mobile application and website was Rs.4,034 for the Financial Year 2021.
The average value of Orders on the Nykaa Fashion mobile application and website is the highest among leading online fashion retail platforms in India.
Manufacturing of Products:
Company manufactures owned brand beauty and personal care products through third party manufacturers.
Company has entered into manufacturing agreements with several manufacturers in India, for the manufacture of such products which are sold under company’s owned brands such as “Nykaa Cosmetics”, “Nykaa Naturals” and “Kay Beauty”.
Company’s owned brands are available on our online and offline channels, as well as for certain brands at third party retailers.
Management Team:
- Mrs. Falguni Nayar (Designation: Executive Chairperson, Managing Director and Chief Executive Officer)
- Mr. Sanjay Nayar (Designation: Additional Non-Executive Director)
Objectives of the Issue:
Offer for Sale: (Rs. 4850 cr)
Each of the Selling Shareholders will be entitled to the proceeds of the Offer for Sale. Company will not receive any proceeds from the Offer for Sale.
Fresh Issue: (Rs. 525 cr)
- Investment in certain of our Subsidiaries, namely, FSN Brands and / or Nykaa Fashion for funding the set-up of new retail stores.
- Capital expenditure to be incurred by our Company and investment in certain of our Subsidiaries, namely, Nykaa E-Retail, Nykaa Fashion and FSN Brands for funding the set-up of new warehouses.
- Repayment or prepayment, in full or in part, of certain borrowings availed by our Company and one of our Subsidiaries, namely, Nykaa E-Retail.
- Expenditure to enhance the visibility and awareness of our brands.
- General corporate purposes.
Fund Utilisation:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Investment in certain of our Subsidiaries, namely, FSN Brands and / or Nykaa Fashion for funding the set-up of new retail stores | 35 |
| Capital expenditure to be incurred by our Company and investment in certain of our Subsidiaries, namely, Nykaa E-Retail, FSN Brands and Nykaa Fashion for funding the set-up of new warehouses | 35 |
| Repayment or prepayment of outstanding borrowings availed by our Company and one of our Subsidiaries, namely, Nykaa E-Retail | 130 |
| Expenditure to enhance the visibility and awareness of our brands | 200 |
Peer Group Comparison:
There are no listed companies in India that engage in a business similar to that of FSN E-Commerce Ventures Ltd. Accordingly, it is not possible to provide an industry comparison in relation to the Company.
Financials of the Company:
| (in Crores) | FY 19 | FY 20 | FY 21 |
|---|---|---|---|
| Revenue | 1116.3 | 1777.8 | 2452.6 |
| Net Profit | (-24.5) | (-16.3) | 61.9 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 28th October 2021 |
| Issue Closes on:. | 1st November 2021 |
| Issue Price | Rs.1085 – 1125 |
| Face Value | Rs.1 |
| Retail Category Allocation | 10% |
| Minimum Lot | 12 Shares |
| Minimum Investment | Rs.13,500 |
| Issue Constitutes | 10.12% |
| Issue Size | Rs.5375 cr ($716 million) |
| Market Cap | Rs. 53,066 cr ($7.07 billion) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 46,66,667 |
| Equity Shares Offered (OFS) | 4,31,11,670 |
| Equity Shares Offered (Fresh + OFS) | 4,77,78,337 |
| Equity Shares Prior to the Issue | 46,70,36,850 |
| Equity Shares after the issue | 47,17,03,517 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | On or before 8th November 2021 |
| Initiation of Refunds | On or before 9th November 2021 |
| Credit of Equity Shares: | On or before 10th November 2021 |
| Listing Date: | On or before 11th November 2021 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 1,43,52,511 | 1.40 | 4.72 | 92.17 |
| NII | 71,29,781 | 0.60 | 4.15 | 112.51 |
| Retail | 47,53,187 | 3.51 | 6.31 | 12.29 |
| Employee | 2,50,000 | 0.68 | 1.18 | 1.88 |
| TOTAL | 2,64,85,479 | 1.56 | 4.82 | 82.42 |
Note: Retail Subscription on the basis of Applications: 9.05x
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 1.31 | 858.77 | 8.34% | 15.99 |
| Check IPO Allotment Status: |
|---|
Link InTime Website : https://linkintime.co.in/PublicIssue/BSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| FSN E-Commerce Ventures Limited A2, 4th Floor, Cnergy IT Park Appasaheb Marathe Marg, Opposite Tata Motors Prabhadevi, Mumbai 400 025, Maharashtra. Telephone: + (91) 22 3095 8700 E-mail: nykaacompanysecretary@nykaa.com Website: www.nykaa.com |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C-101, 1st Floor, 247 Park Lal Bahadur Shastri Marg Vikhroli (West) Mumbai 400 083, Maharashtra Telephone: +91 22 4918 6200 E-mail: nykaa.ipo@linkintime.co.in Website: www.linkintime.co.in |
