Nykaa Preparing For IPO By Converting To A Public Limited Firm
- ByAyushi Ray | July 27, 2021
India’s largest cosmetic and lifestyle brand, Nykaa, preparing for IPO by converting to a public limited firm. Nykaa has now renamed itself to FSN e-commerce Ventures Limited from FSN e-commerce Ventures Private Limited, according to regulatory filings. The shareholders of Nykaa passed a resolution to this effect on July 16. This step by Nykaa keeps it on the path to an IPO, and the retailer is expected to file its draft red herring prospectus (DRHP) very soon. Nykaa now joins the list of other companies which are now planning to go public, including Paytm, PolicyBazaar, MobiKwik, and CarTrade. As per official reports, Nykaa aims to raise about $700 million at a valuation of $4.5 billion in its IPO. The target valuation is quite higher than the last fundraising in November 2020, when it was $1.8 billion.
The Indian startup ecosystem is witnessing a rush towards filling in for IPO, leading which is Zomato, a live example of a successful IPO. The Rs 9,375 crore public issue of Zomato was very well received from the investors as the share price rose by 66 percent on day one of the listing. On Monday, the market capitalisation of the company had crossed Rs 1 lakh crore. The next big IPO from the Indian startup ecosystem will be of Paytm, which has lined up Rs 16,600 crore and indications are that it is likely to hit the market in October this year. The public listing of Paytm is expected to be an important event for the Indian ecosystem as it is one of the most valuable startups in the country. The other fintech startups which also plan to go for IPO are the Rs 6,500 crore issue of Policy Bazaar and Rs 1,900 crore from MobiKwik.
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