SEBI Approves Nykaa IPO for Rs. 4000 Crore, Check other IPOs Approved with Nykaa

Nykaa IPO approved by SEBI: Securities Exchange Board of India (SEBI) has approved Nykaa’s 4000 Crore Initial Public Offer (IPO) Draft, as per the latest update. The online beauty retailer Nykaa filed papers for its IPO in Mid- August 2021 and finally on 14th October 2021 it got approval by the SEBI. The IPO approval is basically approved for FSN E- commerce ventures, the owner of beauty retailer platform Nykaa.

Key Takeaways

• Nykaa’s Rs. 4000 Crore fund to be raised through IPO, got approval by SEBI.
• A total of 6 companies received the nod for raising funds through IPOs by SEBI, Nykaa being one of them.
• Other Five companies included Adani Wilmar, Star Health & Allied Insurance, Penna Cement Industries, Latent View Analytics and Sigachi Industries who also got a go ahead for raising funds through IPOs by SEBI.
• Nykaa to receive First Mover Advantage after IPO approval

As per the latest update Nykaa, an online beauty retailer has got approval from the market regulator SEBI for its Rs. 4000 crore IPO as a method of raising funds by the public. A total of six companies have been given permission to issue IPOs as per the news.

In an interview with CNBC TV18, Karan Turani of Elara Securities mentions how advantageous it has been for Nykaa as being the brand in the beauty and personal care segment to get an approval for raising funds through Initial Public Offer (IPO). This could be seen as a great opportunity as Nykaa is looking forward to a Beauty and personal care brand for men as well with the name NykaaMan. 

The reason for Nykaa’s expansion is somewhat its strategy of tying up with multiple brands that also offer mass usage products in the personal care sector and becoming the market leaders in the beauty sector. There are other brands following a similar pattern but Nykaa has made a place above them in the heart of the consumers because of its connections with the luxury brands with the help of exclusive contracts.

Nykaa was founded in the year 2012 by Falguni Nayar (Founder and managing director of Nykaa), basically an investment banker who also owned a chain of physical outlets and now is the leading destination for beauty products by women in India. The parent organisation of Nykaa is FSN E-commerce Ventures Pvt. ltd. Nykaa has become an edge personal care organisation due to its professionally managed team keeping in mind the challenges the company might face in the near future and a proper strategy to tackle with all those resisting factors.

The Nykaa after this jump has become a retail business of a total value of Rs. 40,000 Crore. It has been now looking forward to raising around Rs. 525 Crores from its fresh issue of shares by making an initial public offer and another issue of 43.1 million shares. A drawback of Nykaa being is its dependency on certain brand vendors for a major portion of its Gross Merchandise value. Nykaa has come a long way, showing incredible progress, let’s see how it performs in the coming years. 

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