FSN E–Commerce Ventures Limited IPO (Nykaa) IPO

FSN e-commerce Ventures Pvt. Ltd. is a digital consumer technology platform offering a wide range of lifestyle products. Founded in 2012, the company is an omnichannel retailer of beauty, personal care, wellness and fashion products. FSN e-commerce functions through 2 business verticals, namely Nykaa and Nykaa Fashion.

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

Issue Size

₹ 5,351.92 Cr

Face Value

₹ 1

per equity share

Market Lot

12 Shares

Opening Date

Oct 28, 2021

Closing Date

Nov 1, 2021

Price Band

₹1085 to ₹1125

per equity share

Issue Size

₹ 5,351.92 Cr

Face Value

₹ 1

per equity share

Market Lot

12 Shares

Listing at NSE, BSE

FSN E–Commerce Ventures Limited IPO (Nykaa) IPO Important Dates

IPO 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
Demat ACcount
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.

Financial highlights

Financial Period Total Assets (In Rs. Millions) Total Revenue (In Rs. Millions) Total Profit or Loss after Tax (In Rs. Millions)
2018 - 2019 7,756.57 11,163.82 (245.39)
2019 - 2020 11,244.82 17,778.50 (163.40)
2020 - 2021 13,019.90 24,526.37 619.45

How to apply for FSN E–Commerce Ventures Limited IPO (Nykaa) IPO?

You can apply for the FSN E–Commerce Ventures Limited IPO (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 FSN E–Commerce Ventures Limited IPO (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 FSN E–Commerce Ventures Limited IPO (Nykaa) IPO, click here.
2. If you’re a new investor Open DEMAT Account for free with Angel One to begin your investment journey.

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.

- FSN e-commerce Ventures Private Limited sells 25 products every 60 seconds.

- Before going for its public offer, FSN e-commerce Ventures Private Limited completed its acquisition of online jewellery brand Pipa Bella in April 2021.

FSN E–Commerce Ventures Limited IPO (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

FSN e-commerce Ventures Private Limited runs on an inventory-based business model that sets it apart from its competitors. The following table gives a brief insight into the competition that the company sees:

Name of the Company FSN e-commerce Ventures Pvt. Ltd. Purplle Myntra
Type Private Private Private
About the Company Omnichannel platform retailing beauty, fashion and wellness products E-commerce platform selling skincare, hair care and other beauty products Platform offering fashion and lifestyle products, apparel and accessories
Number of Employees 2000+ 800+ 5000+
Revenue in 2020 Rs. 1,777.85 crores Rs. 126.34 crores Rs. 4,262 crores

Nykaa IPO FAQs

How to apply for the FSN e-commerce Ventures Private Limited IPO via Angel One App?

One can use the following steps to apply for an IPO through the Angel One App –
Step 1: Go to the 'Investment Opportunities' section on the Angel One app.
Step 2: Choose the ‘IPOs and FPOs’ option and enter the required information.
Step 3: Enter your UPI ID that has been approved by NPCI.
Step 4: Tap on ‘Invest’ and place your FSN e-commerce Ventures Private Limited IPO order.

How can I find my UPI ID?

Go to the ‘Profile’ section of any UPI app to find your UPI ID. Check the screenshot to find out your UPI ID in different apps by clicking here.

How to create a UPI ID?

Here’s a step-by-step guide to creating a UPI ID from the BHIM app:
Step 1: First, download the BHIM app.
Step 2: Then, verify your mobile number and register the PIN required to open the app.
Step 3: Choose your bank from the provided list.
Step 4: The app will then automatically fetch your bank details.
Step 5: If you have multiple bank accounts, select the one you want to register with.
Step 6: Set up a unique UPI ID.

Can I apply for the FSN e-commerce Ventures Private Limited IPO if I do not have a UPI ID?

In case you don’t have a UPI ID, you can make one easily through UPI handles mentioned in the NPCI list. However, you may also apply through the ASBA process via your bank account.

Why can’t I apply for the FSN e-commerce Ventures Private Limited IPO through UPI ID/handle?

Only NPCI-approved UPI ID/handle can be used to apply for the FSN e-commerce Ventures Private Limited IPO. Therefore, if you cannot apply for this IPO using your current UPI ID, make sure to review the list of apps that have NPCI’s approval to provide UPI service to apply for FSN e-commerce Ventures Private Limited IPO.

When can I receive the UPI mandate request following the order placement for IPO?

You would receive the mandate request against your UPI within 15 to 20 minutes after placing a bid for FSN e-commerce Ventures Private Limited IPO. However, you might face delays at times for various reasons.

Why can’t I find my UPI ID in the Angel One app while applying for IPO?

If you fail to find your UPI ID in the dropdown menu of Angel One App, it implies NCPI does not approve your UPI ID. Make sure to create a UPI ID with any bank present on the NPCI list.

How can I approve the FSN e-commerce Ventures Private Limited IPO mandate request?

Any approval for FSN e-commerce Ventures Private Limited IPO mandate will be given via your UPI app. To know more about the steps on how this process works, click here.

What is the time range within which I have to approve a UPI mandate request?

It is best to approve a UPI mandate request as soon as you receive it. However, the approval window is open from the closing time of an IPO to 12 pm of the next working day.

Can I apply for more than one application for the FSN e-commerce Ventures Private Limited IPO?

No, only one application per PAN is allowed as per rules. In case you apply through different platforms using one PAN, your application will be rejected. Consequently, you won’t receive an allotment for any IPO.

What are the charges associated with the FSN e-commerce Ventures Private Limited IPO?

If you apply through Angel One for the FSN e-commerce Ventures Private Limited IPO, you don’t need to pay for any additional charges.

Can I use a bank account that is not linked with the Angel One app to apply for IPO?

Yes, you can apply for the FSN e-commerce Ventures Private Limited IPO through a bank account not linked with the Angel One app. However, the account should be in your name.

Can NRIs apply for the FSN e-commerce Ventures Private Limited IPO?

NRIs cannot apply for the FSN e-commerce Ventures Private Limited IPO using the Angel One app. However, they can do it through the ASBA facility of their banks.

Can I use a current account to apply for IPO?

No, you cannot apply for the FSN e-commerce Ventures Private Limited IPO with your current account. You need to apply using a savings account. Reach out to your bank to know more about it.

What is a cut-off price? Should I apply at a cut-off price?

Cut-off price is the price at which your shares for the FSN e-commerce Ventures Private Limited IPO will be issued. This price is determined during the allotment stage, and when an individual applies with this price, it means he/she is willing to bid for it at this price point.

Can I apply for IPO using my minor daughter’s account?

No, Angel One App does not permit you to apply for IPOs using any minor’s account. However, a minor can apply through the ASBA facility.

I have applied for IPO, but the funds aren't debited yet. Why so?

Banks usually block or hold the due amount when you apply for an IPO. When you receive the allotment, the money will be debited from your account. However, if you don’t receive the allotment, banks will return your money.

Do I have to pay tax on the profit obtained from IPO?

Yes, you need to pay taxes on the profit according to the tax bracket you fall in.

Can I apply for the FSN e-commerce Ventures Private Limited IPO using my HUF account?

No, you cannot apply for IPO on the Angel One app using your HUF account. However, you can use it while applying through the ASBA process.

Why was my FSN e-commerce Ventures Private Limited IPO application rejected?

IPO application can be rejected due to the following reasons –
●Entering an incorrect UPI PIN or ID during the approval of your mandate
●Using a UPI ID, bank account or Demat account that is not linked with the same PAN
For instance, if you use your Demat account for applying for the FSN e-commerce Ventures Private Limited IPO using your friend’s UPI ID, your application might get rejected since–
●Your PAN and your friend’s UPI ID and are not linked
●Your Demat account is not linked with your friend’s bank account 

When can my funds be blocked or unblocked?

Your bank will block the funds for the FSN e-commerce Ventures Private Limited IPO as soon as you approve the mandate request. However, it will be unblocked if you cannot get shares in an allotment or if your UPI mandate expires. Contact your bank if your funds are not unblocked even after you fail to receive allotments. 

Can I change my bids for the FSN e-commerce Ventures Private Limited IPO after applying?

Yes, you are allowed to modify the lot size and the UPI ID of the FSN e-commerce Ventures Private Limited IPO even after placing your bid. However, if you modify your bid after approving the mandate request, the entire amount of fund will be blocked along with the fund blocked for the initial bid. In case you didn’t approve the mandate, the amount for the initial bid will not be blocked.

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