Most awaited IPO of 2021:- IPO of Nykaa Date, details and GMP everything you need to know.

IPO Updates 26 October 2021 9:25:PM

NYKAA-IPO-2021-DETAILS-BY-GEPL-CAPITAL NYKAA-IPO-2021-DETAILS-BY-GEPL-CAPITAL

Nykaa, the e-commerce beauty behemoth, will begin accepting subscriptions for its initial public offering (IPO) on Thursday, with a target price of more than $7 billion. And, finally, the IPO of Nykaa is opening on 28th October 2021 and this one of the biggest and most awaited IPO issues of Nykaa will continue till 1st November 2021.

We all are so excited about the Nykaa IPO that now let's get into it and know Nykaa IPO details. FSN E-Commerce Ventures Limited (“Nykaa”) was incorporated on April 24, 2012. Nykaa is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers. They have a diverse portfolio of beauty, personal care, and fashion products, including their owned brand products manufactured by them. 

How to apply for Nykaa IPO:- 

With GEPL Capital’s IPO portal you can easily invest in Nykaa IPO 2021 as well as other active IPOs. We value your time that's why just click here and you'll be redirected to our IPO Investment Portal and with a few clicks, you'll be able to subscribe for the IPO of Nykaa.

Nykaa IPO details Date, GMP:-

Distribution Channels –

  • Online: 88.2% of their online GMV came through mobile applications; Nykaa has had one of the highest shares of mobile application-led transactions, among the leading online retail platforms in India during FY21.
  • Offline: Their offline channel comprises 80 physical stores across 40 cities in India over different store formats as of August 31, 2021. Their physical stores currently exist in 3 formats, Nykaa Luxe, Nykaa On Trend, and Nykaa Kiosks.

 
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Business Verticals –

  • Nykaa: Beauty and personal care.
  • Nykaa Fashion: Apparel and accessories.

Nykaa IPO details:- 

IPO Opening Date  Oct 28, 2021
IPO Closing Date  Nov 1, 2021
Face Value rs.1 per equity share
Issue Type Book Built
Market Lot 12 Shares
Min Order Quantity

12 Shares

IPO Price 1085 to rs.1125 per equity share
Offer for Sale 41,972,660 Eq Shares of rs.1
(aggregating up to rs.4,721.92 Cr)
Employee Discount 100
Listing At BSE, NSE

As of August 31, 2021, they offered approximately 3.1 million SKUs from 4,078 national and international brands to consumers across business verticals. In FY21, the total GMV was rs.40,459.8 million, which grew 50.7% from the FY20. They have entered into manufacturing agreements with several manufacturers in India, for the manufacture of such products which are sold under their owned brands such as “Nykaa Cosmetics”, “Nykaa Naturals” and “Kay Beauty”. Their owned brands are available on their online and offline channels, as well as for certain brands at third-party retailers.

About Nykaa Fashion -

  • The average value of orders on the Nykaa Fashion mobile application and website was rs.3,977 for the 5 months ended August 31, 2021. The average value of orders on the Nykaa Fashion mobile application and website is the highest among leading online fashion retail platforms in India. Nykaa Fashion also has 7 owned brands. These owned brands are available on their online channel and at one physical store, and at third-party retailers for many brands.

 
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Strengths & Strategies to know about Nykaa IPO 2021

Content-first approach to retailing

Nykaa is one of the first online retail platforms in India to drive widespread product and influencer-led education through creative and entertaining content across video and written formats. Their in-house content made by Nykaa Army captures the latest trends, helps ideate and create beauty regimes and outfits, and provides insights on various brands available on their platform.

  • Examples - Explore, launched in 2020, is their in-app content aggregation hub. It is a “watch and buy” feature that enables a consumer to watch content and shop for the products featured in that content in real-time. Nykaa has created a peer-to-peer social community called the Nykaa Network. Nykaa Network is India’s first interactive beauty forum to reach a scale of 3.6 million members as of August 31, 2021, where members can chat with other beauty enthusiasts, ask and answer beauty-related questions, give and seek advice, discover trends and join beauty-centric conversations on topics of their interest.

Deep, symbiotic relationship with brands

The company value their brand relationships and have a team of brand managers who work closely with brands to strategize and execute growth and brand building strategies. They view themselves as brand custodians and apply a client-servicing mindset to their interactions with brands to ensure they are building long-term strategic relationships.

  • Example - They advise their brands on pricing and commercial strategies including discounting, sampling, gifting, and couponing to meet consumer demand while respecting the brand’s desired positioning in the market.

A diverse portfolio of owned brands

Nykaa has crafted a portfolio of 15 owned brands. Their owned brands play a key role in increasing the assortment of products for their consumers. Many of their owned brands have a high recall and function as independent brands. The manufacturing for such brands is carried out by third-party vendors.

Comprehensive assortment and focus on curation and merchandising

Nykaa seeks to strike a balance between the breadth and relevance of the assortment of offerings on their platform. Their lifestyle product portfolio spanned across 4,078 brands and approximately 3.1 million SKUs as of August 31, 2021, developed to cater to the varying needs of their diverse consumer base. As part of their merchandising and curation strategy, they focus on the market fit for products offered, ongoing demand, and consumer trends.  

The company leverages its Omni-channel database of consumers to select store locations, design brand and assortment mix, direct traffic to their stores, plan offline beauty events and marketing campaigns, and create an experiential-based, educational and personalized shopping experience.

As of August 31, 2021, they operated 80 physical stores in 40 cities of India across 3 formats:

  • Nykaa Luxe: The Nykaa Luxe store format offers a luxury beauty experience. The format showcases prestige and luxury international and domestic brands.
  • Nykaa On-Trend: The Nykaa On-Trend stores offer a differentiated experience for the consumers with the current best-selling products chosen across beauty and personal care brands.
  • Nykaa Kiosks: The Nykaa Kiosks are free-standing units usually in the atriums of shopping malls. The company predominantly sells its owned brands through these kiosks.

As of August 31, 2021, they operated 80 physical stores in 40 cities of India across 3 formats:

Further expand Omni-channel capabilities:-

Nykaa aims to invest further towards the expansion of their physical store network to serve more consumers across the country with their Omni-channel experience. As an extension of their Omni-channel capabilities, they commenced Nykaa PRO, a membership-based program for beauty professionals and makeup artists. They are also conducting trials of SuperStore, an online channel with a separate mobile application for standalone local retailers in India to offer them select beauty and personal care products to offer to their consumers.

Valuation & Recommendation

Unlike its competitors, Nykaa has taken the conversation away from discounts and liquidation and more towards the brand building of their vendors through content about the quality and use of the products, creating a sustainable marketplace for long-term synergistic relationships with the suppliers. Nykaa also enjoys a healthy average order value (rs. 1,886 for BPC and rs.3,197 for fashion for 5M FY22) – which is almost double the industry average.

This helps keep fulfillment costs to less than 10% of revenues. As existing customers contribute 70% to the GMV, marketing costs also come down on a y-o-y basis, leading to margin expansion of around 200 bps to 6.6% in FY21. There remains a largely untapped market opportunity for organized retail in Tier 2 and 3 cities, which Nykaa is putting more effort into. We recommend a subscribe rating to the issue.

So that's all you need to know about the IPO of Nykaa 2021. if you want to invest in this one then click here. To explore more investment opportunities click here

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