Fashion e-retailer ‘Nykaa’ converts to a public company

28th July 2021, Mumbai:

Fashion e-retailer Nykaa has converted from being a private company to a public one.

Founded in 2012, Nykaa is a big name in online fashion and logs 55 million monthly visits and lists over 1,200 brands, having a registered user base of over 15 million.

It has six warehouses in the country. Last year its operating revenue increased 57 per cent while its Ebidta margins grew from 2.95 per cent to 4.61 per cent.

Public companies do not have restrictions placed on private ones, like prohibited from transferring their shares to the public, finding it difficult to gain external financial support and greater risks and liabilities of shareholders.

Nykaa is proposing to undertake an initial public offer of its equity shares of a face value of Rs 1 each by way of fresh issuance of equity shares and/or an offer of sale of such a number of equity shares by certain of the existing and eligible shareholders of the company.

The equity shares are proposed to be listed on one or more of the recognized stock exchanges in India.

Nykaa Fashion currently retails from its dedicated e-commerce store and Nykaa has both an online platform and a large number of brick-and-mortar stores and kiosks across India.

With the online beauty market expected to double by 2022, the company is looking to increase the brands and categories it offers.

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