Nykaa IPO to open on October 28: Price band, grey market premium, lot size and more

The initial public offer (IPO) of online beauty e-commerce platform Nykaa will open on October 28. The firm, operated by FSN E-Commerce Ventures, aims to raise Rs 5,350 crore through the share sale.

Here's a look at 10 things you need to know before you place bids during the IPO.

• Nykaa has fixed a price band of Rs 1,085-1,125 per share for its initial public offer (IPO) that will close on November 1. The company received SEBI's nod for the IPO earlier this month, along with six other firms.
• The stock is commanding a strong premium of Rs 670 per share in the grey market, implying a listing price of Rs 1,795 on the BSE and the NSE.
• Falguni Nayar, Sanjay Nayar, Falguni Nayar Family Trust And Sanjay Nayar Family Trust are the promoters of the company. Post the IPO, their stake will fall to 52.56 per cent from the current 54.26 per cent.
• The share sale comprises equity shares aggregating up to Rs 630 crore (fresh issue) and an offer for sale of up to 41,972,660 equity shares being offered by the selling shareholders (offer for sale or OFS).
• A retail investor can apply for a minimum of 12 shares or 1 lot for which Rs 13,500 will have to be spent. One can apply for a maximum of 14 lots, comprising 168, shares for which bids worth Rs 1,89,000 will have to be placed.
• Allotment of shares will be done on November 8 and the firm will get listed on the BSE and the NSE on November 11, 2021. The share sale includes a reservation of up to 2,50,000 equity shares for purchase by eligible employees.
• Existing investors such as TPG Growth IV SF Pte, Lighthouse India Fund and others are expected to offload their shares in the IPO.
• Nykaa reported a net profit of Rs 61.9 crore in FY21 compared to a loss of Rs 16.3 crore in FY20. Total income rose to Rs 2,452.6 crore in FY21 compared to Rs 1,777.8 crore in FY20. In FY19, the firm posted a loss of Rs 24.54 crore.
• Kotak Mahindra Capital, Morgan Stanley India, Bank of America Securities, Citigroup Global Markets India, ICICI Securities and JM Financial are the merchant bankers to the issue.
• Nykaa is a consumer technology platform, delivering a content-led, lifestyle retail experience to consumers. The company has a diverse portfolio of beauty, personal care, and fashion products, including its own brand products manufactured by it. The company operates under two major verticals -- beauty and personal care, and apparel and accessories.