IPO-Note FSN E- Commerce Ventures Limited
Rs-1085-Rs1125  per Equity share Recommendation: SUBSCRIBE

Company Profile: –

FSN E-Commerce Ventures (Nykaa) was incorporated in 2012 and has, since, seen rapid growth over the years, to become the largest specialty beauty & personal care platform in India, based on products sold in FY21. It has two major divisions – beauty & personal care (comprising 84% of GMV sales in FY21) and fashion (comprising 16% of GMV sales in FY21) .They have a diverse portfolio of beauty, personal care and fashion products, including their owned brand products manufactured by them. As a result, they have established themselves not only as a lifestyle retail platform, but also as a popular consumer brand. Nykaa offers consumers an Omni-channel experience –

Online: Company’s online channels include mobile applications, websites and mobile sites. As of August 31, 2021, they had cumulative downloads of 55.8 million across all their mobile applications

Offline: Their offline channel comprises of 80 physical stores across 40 cities in India over 3 different store formats as of August 31, 2021

FSN E- Commerce Ventures Limited( NKYAA) IPO

Wants To Apply Online

Issue Details
Objects of the issue  ·To carry out the Offer for Sale of up to 41,972,660 Equity Shares by the Existing Shareholders; and

·Investment in setting up new stores.

·Repayment or prepayment of outstanding borrowings.

·Expenditure to enhance the visibility and awareness of the brands.

Issue Size Total issue Size – Rs. 5350Cr.

Offer for Sale – Rs. 4720 Cr.

Face value Rs.1.00 Per Equity Share
Issue Price Rs. 1085 – Rs. 1125
Bid Lot 12 shares
Listing at  BSE, NSE
Issue Opens: 28th Oct, 2021 – 1st Nov, 2021
QIB 75% of Net Issue Offer
Retail 10% of Net Issue Offer
NIB 15% of Net Issue Offer

Trade AnyTime AnyWhere With Elite Empower Mobile App


Check FSN E- Commerce Ventures Limited( NKYAA) Limited IPO Allotment Status

FSN E- Commerce Ventures Limited( NKYAA) IPO allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.

One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-

  1. To FSN E- Commerce Ventures Limited( NKYAA)  IPO Allotment Status
  2. Go to Application Status
  3. Select IPO as FSN E- Commerce Ventures Limited( NKYAA)
  4. Enter your PAN Number or Application Id or DP Client Id.


FSN E- Commerce Ventures Limited( NKYAA) IPO

Application Form

Financial Performance:


Shareholding Pattern:

Shareholding Pattern Pre- Issue Post Issue
Promoters & Promoter Group 54.22% 52.56%
Public  45.78% 47.44%
Source: RHP, EWL Research


  • One of India’s leading lifestyle focused consumer technology platform and also one of the few Indian unicorns which report profits.

  • Nykaa doesn’t have to offer discounts they are borne largely by brands which provides healthy gross margins.

  • Being a specialist in the BPC segment, Nykaa can offer much better filters for a product and, therefore, a superior browsing experience.

  • Diverse portfolio of owned brands. Nykaa has crafted a portfolio of 15 owned brands

  • The company is the preferred destination for luxury and prestige products in India for consumers and brands.

Key Highlights:

  • Revenue from operations saw a growth at a CAGR of 48.2 % from FY19-21 and profit growth at a CAGR of 59% from FY 19-21.

  • EBITDA Margin improved from 4.59% in FY20 to 6.61% in FY21

  • In F.Y21 GMV from beauty and personal care was ₹3380crore and from fashion it was ₹ 665 crore.

  • Total borrowing of the company as on 31st march 2021 is ₹ 187 crore.

  • In 1QFY22 company reported profit of ₹ 3.5 crore.

  • Net worth of the company in as on 30th June 2021 is ₹699Crore.

  • GMV growth for first 3 month of FY 21 is 238%.

Risk Factors:

  • The company has incurred losses in the past and FY21 is the first year where company has made profit

  • Nykaa is still facing issues in addressing customers’ complaints efficiently.


Nykaa has gained a significant brand value not only as a lifestyle retail platform but also as a leading lifestyle brand, company has successfully redefined the art of Retailing of Beauty and Personal Care in India. As we have witnessed a shift in the fancy of IPOs from loss-making companies in the recent past and the best example is that of Zomato. This company too falls in that pack of unicorns as it has an e-commerce platform for fashion and personal care products. Based on financial parameters, the valuations are highly stretched and making this an expensive offer.  but considering factors such as increasing PAT, positive cash flows, huge growth capabilities and confidence in the company’s management, Also company has posted strong growth without a substantial cash burn. & has posted profits along with strong improvement in capital turnover ratio to 4.2 times in the FY 21.

At upper end of the price band, the issue is valued at 21.81x EV/ Sales on FY21 financials. we recommend “SUBSCRIBE” rating on this issue.

Disclosure in pursuance of Section 19 of SEBI (RA) Regulation 2014

Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their investment decision and must exercise their own judgment before making any investment decision.
For analyst certification and other important disclosures, see the Disclosure Appendix, or go to www.elitewealth.in. Analysts employed by Elite Wealth Limited are registered/qualified as research analysts with SEBI in India.( SEBI Registration No.: INH100002300)
Disclosure Appendix
Analyst Certification (For Reports)
Israil Khan, Elite Wealth Limited, suhail@elitewealth.in
The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their securities. I/We also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Limited.
As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that the analyst covered in the report, that:
(1) all of the views expressed in the report accurately reflect his or her personal views about any and all of the subject securities or issuers; and
(2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in the report.
For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.
Research Excerpts
This note may include excerpts from previously published research. For access to the full reports, including analyst certification and important disclosures, investment thesis, valuation methodology, and risks to rating and price targets, please visit www.elitewealth.in.
Company-Specific Disclosures
Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting https://www.elitewealth.in, or emailing research@elitestock.com with your request. Elite Wealth Limited may screen companies based on Strategy, Technical, and Quantitative Research. For important disclosures for these companies, please e-mail research@elitestock.com.
Options related research:
If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the risk disclosure documents, please contact your Broker’s Representative or visit the OCC’s website at https://www.elitewealth.in
Other Disclosures
All research reports made available to clients are simultaneously available on our client websites. Not all research content is redistributed, e-mailed or made available to third-party aggregators. For all research reports available on a particular stock, please contact your respective broker’s sales person.
Ownership and material conflicts of interest Disclosure
Elite Wealth Limited policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst’s area of coverage. Analyst compensation: Analysts are salary based permanent employees of Elite Wealth Limited. Analyst as officer or director: Elite Wealth Limited policy prohibits its analysts, persons reporting to analysts from serving as an officer, director, board member or employee of any company in the analyst’s area of coverage.
Country Specific Disclosures
India – For private circulation only, not for sale.
Legal Entities Disclosures
Mr. Ravinder Parkash Seth is the Managing Director of Elite Wealth Ltd (EWL, henceforth), having its registered office at Casa Picasso, Golf Course Extension, Near Rajesh Pilot Chowk, Radha Swami, Sector-61, Gurgaon-122001 Haryana, is a SEBI registered Research Analyst and is regulated by Securities and Exchange Board of India. Telephone:011-43035555, Facsimile: 011-22795783 and Website: www.elitewealth.in
EWL discloses all material information about itself including its business activity, disciplinary history, the terms and conditions on which it offers research report, details of associates and such other information as is necessary to take an investment decision, including the following:
1. Reports
a) EWL or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;
(b) EWL or its associates or relatives, have no actual/beneficial ownership of one per cent. or more in the securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;
(c) EWL or its associate or his relative, has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;
2. Compensation
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) EWL or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;
(c) EWL or its associates have not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(d) EWL or its associates have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(e) EWL or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.
3 In respect of Public Appearances
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report and the types of services provided by EWL

Need An Assistance:

    Product Interested