E-commerce beauty aggregator platform Nykaa has filed preliminary papers with market regulator Securities & Exchange Board of India (SEBI) for an initial public offering (IPO).
Nykaa, formally known as FSN E-Commerce Ventures Ltd, said its IPO will comprise a fresh issue of shares worth up to Rs 525 crore via and an offer for sale of up to 43.1 million shares, according to a copy of its draft red herring prospectus dated Monday.
Nykaa’s public offering comes after food-delivery firm Zomato Ltd’s stellar debut on the bourses last month.
The company is seeking a valuation of more than $4 billion.
Morgan Stanley, BofA Securities, and Citigroup are among the lead book-running managers to the IPO.
Promoter Sanjay Nayar Family Trust along with investors such as TPG Growth IV SF Pte. Ltd, Lighthouse India Fund, J M Financial, and Investment Consultancy Services, and Yogesh Agencies & Investments Private Ltd will take part in the OFS.
Other selling shareholders include Sunil Kant Munjal, Harindarpal Singh Banga, and Indra Banga, and Michael Carlos, former president of Swiss fragrance maker Givaudan.
The company proposes to utilise the proceeds from the issue for brand visibility and awareness, repayment of borrowings, setting up new retail stores for Nykaa, Nykaa Fashion, and setting up new warehouses.
As of March 31, the company had cumulative downloads of 43.7 million across all its mobile applications. It also has an offline presence comprising 73 physical stores across 38 cities in India, as per the prospectus.