Nykaa IPO

Founded in 2012, Nykaa is one of the leading omnichannel retailers of beauty and wellness products. The company also supplies an extensive range of apparel and accessories. Its digital platform caters to the requirements of more than 5 million active users on a monthly basis.

It sells products from over 2,000 brands belonging to different categories. These include skincare, health supplements, make-up, etc. As of 2021, Nykaa has more than 12 warehouses across India that are dedicated to its fashion and beauty products.

Nykaa IPO Objectives

- Fulfilment of general corporate purposes
- To meet its capital expenditure requirements
- Expanding its operations in a market that is witnessing unprecedented interest from investors

Nykaa IPO - Details

As per reports, Nykaa will be aiming to raise funds worth anywhere between $500 million and $750 million via its initial public offering. The Mumbai-based company is seeking a valuation of approximately $3.5 billion. Its upcoming IPO will comprise a fresh issue as well as an offer for sale.

Opening Date

To be updated

Closing Date

To be updated

Price Band

To be updated

per equity share

Issue Size

₹ To be updated

Face Value

₹ To be updated

per equity share

Market Lot

To be updated

Opening Date

To be updated

Closing Date

To be updated

Price Band

To be updated

per equity share

Issue Size

₹ To be updated

Face Value

₹ To be updated

per equity share

Market Lot

To be updated

Listing at NSE, BSE

Nykaa IPO Important Dates

IPO Open Date Yet to be announced
IPO Close Date Yet to be announced
Basis Of Allotment Date Yet to be announced
Initiation Of Refunds Yet to be announced
Credit Of Shares To
Demat ACcount
Yet to be announced
IPO Listing Date Yet to be announced
UPI Mandate Expiry Date Yet to be announced

Why Should You Invest in Nykaa IPO?

Omnichannel platforms like Nykaa dedicated to beauty and wellness products have ample room to expand their operations in the personal care space. This is primarily owing to the void between latent demand and supply in the premium and mass division.

The company has already managed to reduce the supply gap by building a vast portfolio of products with high availability. Its multi-channel approach to sales has played a crucial role in that regard. In addition to this, the pandemic has had a positive impact when it comes to Nykaa’s customer adoption.

Overall, with the growing popularity of digital platforms along with the expansion of India’s beauty industry, the outlook appears to be positive for Nykaa. As a result, investors may consider booking shares of the IPO of this company’s upcoming initial public offer once it is open for subscription.

Financial highlights

Financial Year FY17 (in billion) FY18 (in billion) FY19 (in billion) FY20 (in billion)
Revenue Rs. 2.14 Rs. 5.1 Rs. 12 Rs. 18.6
Besides its revenue, here are certain crucial figures that investors might want to note:
  • In FY2019, Nykaa reported a net profit of Rs. 2.31 crores, and its revenue from operations during that period stood at Rs. 1,159 crores in comparison to Rs. 555.10 crores in the previous financial year. Moreover, in FY2019, this company had a valuation of $743 million.
  • The company’s EBITDA (earnings before interest, tax, depreciation and amortisation) stood at Rs. 94 crores in FY2020.

How to apply for Nykaa IPO?

You can apply for the Nykaa IPO in these ways:

UPI
Link your bank account to a reliable UPI ID and register it with your Angel One account. Proceed to book Nykaa IPO shares using the ID, confirm the payment on the UPI app, and block the amount for allotment.

Demat Account

1. If you are already a client of Angel One, apply directly for Nykaa IPO, click here.
2. If you’re a new investor Open DEMAT Account for free with Angel One to begin your investment journey.

Nykaa – Noteworthy Highlights

Here are some noteworthy highlights regarding Nykaa:

- This Mumbai-based company has more than 75 offline stores across India.

- In 2020, Nykaa became a unicorn company, raising approximately Rs.166.6 crore in the company’s Series E3 funding which was led by Steadview Capital.

- Nykaa completes 1.5 million orders on a monthly basis and currently has roughly 15 million registered users.

- Nykaa completed the takeover of an online jewellery company, Pipa Bella, in April 2021 before announcing that it would be going public.

Nykaa IPO - SWOT Analysis

strengths

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

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

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

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.
Strenghts Strengths
Weaknesses Weaknesses
Opportunities Opportunities
Threats Threats

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.

Competitor Analysis: Market Peers

Nykaa’s inventory-led business model sets it apart from its competitors in the market. It buys products from brands and distributors and sells them directly to consumers via online and offline mode. This ensures competitive pricing besides the quality and authenticity of products. This table gives an insight into the competition Nykaa faces from other players in the market:

Company Nykaa Myntra Purplle
About It retails beauty and wellness products via its omnichannel platform. Myntra is an online platform that primarily offers fashion and lifestyle products. Purplle is an e-commerce platform that sells a wide range of cosmetics, skincare and hair care products.
Company Type Private Private Private
Revenue in FY20 Rs. 1860 crores Rs. 4262 crores Rs. 126.34 cores
Funding $341.9 million $333.1 million $96.3 million

Nykaa IPO FAQs

What is Nykaa IPO?

Nykaa IPO aims to raise between $500 million and $750 million. The IPO will comprise fresh issue as well as offer for sale by existing shareholders.

When will Nykaa IPO be open for subscription?

It is not yet known when the IPO will open.

What is the minimum lot size in relation to Nykaa IPO?

The issuer hasn’t announced the minimum lot size yet.

When is the Nykaa IPO listing date?

The listing date hasn’t been announced yet.

How will investors receive their shares?

Nykaa shares will be credited to your DEMAT account once the allotment process is complete.

Who are the merchant bankers for Nykaa IPO?

The company has appointed Kotak Mahindra Capital and Morgan Stanley for its IPO.

What is the minimum order quantity for Nykaa IPO?

The company has not shared any data regarding the order quantity.

Who is the registrar of Nykaa IPO?

The registrar of Nykaa IPO hasn’t been announced yet.

Which categories of investors are allowed to participate in Nuvoco Vistas IPO?

The issuer is yet to announce the share allotment across different categories.

What will be the issue type of Nykaa IPO?

Nykaa IPO will be a book build type issue.

Enjoy Free Equity

Delivery Trade for Lifetime

Get the link to download the app

Enjoy Lifetime Free Delivery Trade

Download the app now

Or Scan below QR Code

to download App

Open an account