Nykaa IPO opens today, 3-day subscription window will close on Nov 1

Nykaa, the e-commerce beauty company, is set to launch its intial public offering (IPO) on Thursday. FSN E-Commerce, which operates Nykaa, has priced its IPO at ₹1,085 to ₹1,125 per share, giving the company a valuation of as much as $7.11 billion.

Ahead of the launch of its IPO, FSN E-Commerce said on Wednesday that it has raised ₹2,396 crore from anchor investors. The company has decided to allocate a total of 21,296,397 equity shares to anchor investors at ₹1,125 a share, aggregating to ₹2,395.84 crore, according to a circular uploaded on the BSE website.

The company also received bids for 40 times the number of shares it plans to sell to anchor investors in its IPO, news agency Reuters reported, indicating strong interest in the sale.

BlackRock Global Funds, Fidelity Funds, Nomura, Government of Singapore, Monetary Authority of Singapore, Canada Pension Plan Investment Board, T Rowe Price, Tiger Global Investments Fund, Goldman Sachs and Morgan Stanley are among the investors that participated in the anchor book.

Nykaa has said that it will use the IPO proceeds to set up new retail stores, fund capital spending and repay debts.

The IPO of FSN E-Commerce Ventures comprises fresh issue of equity shares worth ₹630 crore and an offer for sale (OFS) of 41,972,660 equity shares by promoter and existing shareholders.

The issue will open for public subscription on October 28 and conclude on November 1.

Founded by former investment banker Falguni Nayar in 2012, Nykaa is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers.