INDIAN e-commerce beauty giant Nykaa will open its initial public offering to subscribers on Thursday (28), aiming for a total valuation of over Rs 532 billion ($7 billion), the company's founder said.
The start-up sector has been a rare bright spot in the coronavirus-battered economy, with some 20 unicorns -- startups valued at more than a billion dollars -- created so far this year.
Nykaa, which is seeking to raise around $700 million through the IPO subscription for a total valuation of over $7bn, will be the biggest flotation since online food delivery firm Zomato's offering in July raised $1.3bn.
Start-ups in India have attracted billions of dollars in investment even though many are yet to make a profit but Nykaa has reported revenues of $330m in the fiscal year that ended in March.
Founded by former investment banker Falguni Nayar, India's first woman-led unicorn offers 4,000 beauty, personal care and fashion brands through its website, app and 80-odd brick-and-mortar stores.
"There's still a significant headroom available for growth," she said at a virtual press conference as she credited the retailer's "resilient and capital efficient model" for the success.
"Our brand has a strong resonance among millennials and Gen-Z."
Nayar, who will continue to own a majority stake along with her family after the IPO, added the company was considering "selective international expansion" as the next step ahead.
Shares in the IPO, which will close on November 1, will be issued in a price band of $14.46 to $15 each.
Some 30 companies have announced plans to offer shares in India this year.
Other unicorns set to list include digital payments firm Paytm, backed by Japan's SoftBank and Chinese billionaire Jack Ma.
(AFP)
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The JRD Tata portrait at Air India’s headquarters
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