Veteran investment decision banker-turned-entrepreneur Falguni Nayar turned the richest self-designed girl in India just after the stellar debut of cosmetics and trend retailer Nykaa’s mother or father FSN E-Commerce Ventures on Wednesday. The listing price of 2,018 rupees, which is a whopping 79% quality to the challenge cost of 1,125 rupees, offers the corporation a valuation of $13 billion. Nayar’s 52.6% stake held with her partner Sanjay Nayar, who heads American private equity firm KKR’s India unit, and their twins, is value $6.8 billion
Nayar, 58, who is the founder, managing director and CEO of Nykaa, was dressed in a resplendent pink sari at present day listing ceremony at the Countrywide Inventory Exchange in Mumbai. She became a billionaire in a pre-IPO private placement in June that valued Nykaa at $2.3 billion, supplying her a internet worthy of of $1.1 billion. The listing boost has made her the richest self-built girl in India, a title held right until now by biotech entrepreneur Kiran Mazumdar Shaw whose latest internet worth is $3.6 billion
The Nykaa IPO, which opened on Oct 28 and shut on November 1, was over-subscribed 82 situations with the portion for qualified institutional purchasers subscribed at 92.3 occasions non-institutional buyers at 110 situations the retail portion at 10.3 instances and the employees’ section at approximately 1.9 times. The Mumbai corporation had established a price tag band of between 1,085 and 1,125 rupees for each share.
The multi-brand retailer of cosmetics and clothing made a fresh situation of 5.6 million shares in addition to shares becoming offered by a selection of early investors. These include Hong Kong commodities billionaire Harry Banga Rishab Mariwala son of Indian shopper goods billionaire Severe Mariwala and Sunil Kant Munjal, brother of automobile billionaire Pawan Munjal. The proceeds will be employed for introducing new outlets and warehouses and for maximizing brand name visibility.
“Nykaa’s listing on the Indian inventory exchanges now has been a historic landmark and what can make it so awe-inspiring is that they are just obtaining started out,” claims Angad Banga, son of Harry Banga, whose Hong Kong-dependent household office environment was just one of the earliest investors and continues to keep a minority stake in Nykaa. “The unparalleled amount of investor interest we have observed is a genuine reflection of the enthusiasm and perseverance of the founder, the really qualified and efficacious management team driving the organization and the remarkable vision they have for the future.”
Nykaa, which features far more than 4,000 brands across its splendor, individual care and style platforms, has 80 merchants across 40 towns. But 97% of its gross goods price (GMV) is from online revenue with a 63% contribution from tier 2 and tier 3 metropolitan areas. About 70% of the GMV is from present clients. It works with a lot more than 3,000 influencers like Gen Z trend setters, life style bloggers and superstars.
Nykaa is a exceptional case in point of a startup by now turning a gain. It has been Ebitda positive for the past a few yrs and grew to become worthwhile in fiscal 2021. Nykaa’s earnings rose to $334 million for the fiscal 12 months ended March 2021 from $236 million in the earlier fiscal calendar year. The company documented a internet revenue of $8 million in that identical interval vs . a internet decline of $2 million in fiscal 2020.
For the 3 months ended June 30, 2021, Nykaa’s revenue was almost 8.2 billion rupees ($110 million) with web income of 35.2 million rupees ($474,000).
Nayar, who had stated in a 2019 interview with Forbes Asia, that she will get her company general public only soon after it grew to become financially rewarding, was correct to her term.
Her entrepreneurial journey begun in 2012 when she stop her task as an expense banker just after spending 19 years at Kotak Mahindra Financial institution, started by billionaire Uday Kotak. She had established up Kotak’s securities functions in the U.S. and the U.K. in addition to spearheading scores of IPOs in India.
In 2012, she invested $2 million to start off “Nykaa”—which is derived from the Sanskrit phrase “Nayaka,” indicating 1 who’s in the spotlight. Her goal was to bring an array of international natural beauty brands together with the likes of Clinique and Bobbi Brown to Indian shoppers. She soon expanded to brick-and-mortar shops with the very first one particular opening in 2014. In 2015, she released the company’s in-home Nykaa cosmetics manufacturer and started internet hosting the Nykaa Femina Elegance Awards. By 2016, she had ushered in the to start with luxury brand name Estee Lauder.
Nayar operates Nykaa with her twins—Adwaita who is the cofounder and CEO for the vogue enterprise and Anchit who is the CEO for the splendor and e-commerce company. She also has ideas of taking it abroad, first to the Middle East and then Europe.