The company also deals with manufacturing its own products, which are sold
under its owned brands such as Nykaa Naturals, Nykaa Cosmetics and Kay
Beauty. Ahead of its IPO, Nykaa has transformed itself into a public
entity under the name of FSN e-commerce Ventures Private Limited.
FSN E–Commerce Ventures Limited IPO (Nykaa) IPO Objectives
- To fund general corporate expenditures.
- To meet the capital expenses.
- For its operational expansion.
FSN E–Commerce Ventures Limited IPO (Nykaa) IPO - Details
FSN e-commerce Ventures
Private Limited has filed for its IPO with SEBI to raise
Rs. 5,351.92 crores.
The public offering would include a fresh issue of shares worth
Rs. 630 crores along
with an offer for sale of around 4.1 crore equity shares.
- Opening Date: Oct 28, 2021
- Closing Date: Nov 1, 2021
- Price Band: ₹1085 to ₹1125 per equity share
- Market Lot: 12 Shares
FSN E–Commerce Ventures Limited IPO (Nykaa) IPO
Important Dates
|
PO Open Date |
Oct 28,
2021 |
|
IPO Close Date |
Nov 1, 2021 |
|
Basis Of Allotment Date |
Nov 8,
2021 |
|
Initiation Of Refunds |
Nov 9, 2021 |
|
Credit Of Shares To |
Nov 10,
2021 |
|
IPO Listing Date |
Nov 11, 2021 |
Why Should You Invest in FSN
E–Commerce Ventures Limited IPO (Nykaa) IPO?
FSN e-commerce Ventures
Private Limited, previously known as Nykaa, is one of the largest
lifestyle-oriented platforms. It is a leading retailer of luxury beauty and
wellness brands catering to more than 5 million active users each month. The
company has recently entered the unicorn club and comes with strong
profitability and growth prospects. Moreover, it boasts of a robust financial
performance in FY2020 and FY2021. With the increasing popularity of online
platforms and the fast-expanding beauty industry in India, FSN e-commerce
Ventures seem to be in a great spot. Considering the current financial
position of FSN e-commerce Ventures Private Limited, it is poised for impressive
growth. Accordingly, investors should consider subscribing to the initial share
sales of this company.
FSN E–Commerce
Ventures Limited IPO (Nykaa) – Noteworthy Highlights
Here are some of the important highlights of FSN
E–Commerce Ventures Limited IPO (Nykaa) that investors should be aware of:
- This Mumbai-based company has more than 75 offline
stores across India.
- FSN e-commerce entered the unicorn club in 2020,
raising about Rs. 166 crores in its Series 3 funding which was piloted by
Steadview Capital.
- The company comes with over 75 offline stores
throughout India, selling more than 35,000 products across 650+ brands.
- Strengths
- Updated product portfolio: Nykaa keeps updating its product range and offering, building a diversified portfolio. This has been instrumental in expanding its customer base. Moreover, by constantly updating the offerings, this company has put itself in a favourable position to tackle challenges posed by the dynamic business environment.
- Impressive balance sheet: Nykaa’s strong balance sheet provides it with scope for expansion. It can utilise funds to finance new projects, which can diversify its revenue stream. This will have a positive impact on its key financial metrics, such as Return on Equity (ROE), Return on Sales (ROS), and more.
- Efficient inventory management: This company works on an inventory model, which ensures that it has sufficient stock to meet the demand.
- Strong social media presence: Nykaa runs social media marketing campaigns on a regular basis. This has played a vital role in boosting sales and acquiring customers.
- Weaknesses
- Implementation of technology: Nykaa has integrated technology in its backend processes. That said, it has not been able to make use of technological advantages in front end processes.
- Low spending on research and development: Nykaa doesn’t spend a sufficient amount of funds on improving its research and development infrastructure. This can directly impact this company’s performance.
- Handling customer grievances: Nykaa is still facing issues in addressing customers’ complaints efficiently. This can affect the company’s growth.
- Delivery charges: Nykaa levies delivery charges if the order value is below a certain amount which eliminates potential buyers.
- Opportunities
- Growth prospect: With improvement in the standard of living, more individuals are making a shift towards e-commerce, which presents an excellent opportunity for Nykaa.
- Improvements in AI: The company can take advantage of the developments in AI to estimate consumer demand and fulfil the requirements of niche segments.
- E-commerce business model: Nykaa’s e-commerce business model can assist this company in collaborating with local suppliers logistic companies that belong to international markets. Besides this, the social media growth of the company can enable it to gain access to a large number of potential customers with a low marketing budget.
- Threats
- Change in domestic rules: As we advance, in case any changes take place regarding domestic laws and tax liability, it could affect Nykaa’s plans.
- Growing competition: The number of competitors both online and offline is increasing. Accordingly, there’s always a possibility of losing customers.
- Drop in expenditure: If consumers’ expenditure level drops, it can affect the profitability of this company.
- Before going for its public offer, FSN e-commerce
Ventures Private Limited completed its acquisition of online jewellery brand
Pipa Bella in April 2021.
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