Table of Contents
Introduction
Nykaa, the Indian beauty and wellness e-commerce company founded by Falguni Nayar, is planning to raise Rs 125 crore through the issuance of non-convertible debentures (NCDs). This move is aimed at strengthening the company’s balance sheet and fueling its growth plans.
The Fundraising Plan
Nykaa has filed a draft shelf prospectus with the Securities and Exchange Board of India (SEBI) to raise Rs 125 crore through the issuance of NCDs. The company plans to issue 12,500 NCDs of face value Rs 10 lakh each, with a tenure of 3 years. The NCDs will carry a coupon rate of 9.5% per annum, payable semi-annually.
Objectives of the Fundraising
The proceeds from the NCD issuance will be used to strengthen Nykaa’s balance sheet, reduce debt, and fuel its growth plans. The company plans to utilize the funds to:
- Reduce debt: Nykaa aims to reduce its debt burden by repaying some of its existing loans and liabilities.
- Strengthen balance sheet: The company wants to improve its balance sheet by increasing its net worth and reducing its debt-to-equity ratio.
- Fuel growth plans: Nykaa plans to use the funds to fuel its growth plans, including expanding its product offerings, enhancing its logistics and supply chain, and increasing its marketing efforts.
Nykaa’s Growth Story
Nykaa has been one of the fastest-growing e-commerce companies in India, with a strong focus on the beauty and wellness segment. The company has witnessed significant growth in recent years, driven by its strong brand presence, wide product offerings, and efficient logistics.
Financial Performance
Nykaa’s financial performance has been impressive, with the company reporting a revenue growth of 38% in FY2023 to Rs 4,045 crore. The company’s net profit also increased by 33% to Rs 205 crore during the same period.
Falguni Nayar’s Vision
Falguni Nayar, the founder and CEO of Nykaa, has been instrumental in driving the company’s growth and success. Under her leadership, Nykaa has become one of the most popular beauty and wellness e-commerce platforms in India. Nayar’s vision is to make Nykaa a leading player in the Indian beauty and wellness market, and the fundraising plan is a step towards achieving this goal.
Conclusion
Nykaa’s plan to raise Rs 125 crore through NCDs is a significant move towards strengthening its balance sheet and fueling its growth plans. The company’s strong financial performance and growth prospects make it an attractive investment opportunity for investors. With Falguni Nayar at the helm, Nykaa is well-positioned to continue its growth momentum and become a leading player in the Indian beauty and wellness market.
FAQ’s
Q: How much is Nykaa planning to raise through non-convertible debentures?
A: Nykaa is planning to raise Rs 125 crore through the issuance of non-convertible debentures.
Q: What is the face value of each debenture?
A: The face value of each debenture is Rs 10 lakh.
Q: How many debentures will be issued?
A: Nykaa will issue 12,500 debentures.
Q: What is the tenure of the debentures?
A: The tenure of the debentures is 3 years.
Q: What is the coupon rate of the debentures?
A: The coupon rate of the debentures is 9.5% per annum, payable semi-annually.
Q: What will the funds be used for?
A: The funds will be used to strengthen Nykaa's balance sheet, reduce debt, and fuel its growth plans.