IPO Screener: FSN E-Commerce Ventures issue opens at ₹1,085-1,125 per share

KS Badri Narayanan Chennai | Updated on October 28, 2021

Nykaa owner raises ₹2,396 crore from 174 anchor investors

The ₹5,352-crore FSN E-Commerce Ventures, a multi-brand beauty, personal care and fashion platform under Nykaa and Nykaa Fashion, IPO will open for subscription today. The issue will close on Monday.

The IPO comprises a fresh issue of ₹630 crore and an offer for sale of ₹4,721.92 crore by several selling shareholders including promoters and investors.

The price band for the offer has been fixed at ₹1,085-1,125 per share. The issue will close on November 1 and the market lot is 12 shares.

Anchor investors

Ahead of the issue on Wednesday, FSN E-Commerce Ventures mopped up ₹2,396 crore from 174 anchor investors.

The company in consultation with merchant bankers has finalised allocation of 2,12,96,397 shares to anchor investors, at ₹1,125 a share, the upper end of the price band, according to a notice on the BSE.

Among the marquee investors included Blackrock Global Funds, BEST Investment Corporation, Emerging Markets Growth Fund, Fidelity Funds, Government Of Singapore, Canada Pension Plan Investment Board, T Rowe Price, JP Morgan, Aberdeen Abu Dhabi Investment Authority, CLSA, Goldman Sachs, and Monetary Authority of Singapore.

From domestic investors bandwagon, Aditya Birla Sun Life Trustee, SBI Mutual Fund, HDFC Trustee Company, Nippon Life India Trustee, Axis Mutual Fund, Kotak MF, ICICI Prudential, Franklin MF, Sundaram MF, IDFC MF, L&T MF, Tata MF, Edelweiss, and UTI MF have invested through anchor book. Out of the total allocation to anchor investors, 70,98,801 equity shares or 33.33 percent shares were allocated to 21 domestic mutual funds through a total of 93 schemes, said the company. Total fundraising from these mutual funds was ₹798.61 crore

Utility of funds

Falguni Nayar-backed firm will utilise net proceeds from fresh issuance for investment in two subsidiaries -- FSN Brands and/or Nykaa Fashion – and for setting up new retail stores. Further, the funds will also be used for capital expenditure and investment in subsidiaries, like Nykaa E-Retail, Nykaa Fashion and FSN Brands, and for setting up warehouses, the company DRHP said. Besides, the company will also use funds for repaying debts and to enhance brand awareness and visibility.

Published on October 28, 2021

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