Nykaa files for Rs 4,000 crore IPO

BENGALURU: Beauty and fashion retailer Nykaa has filed a draft red herring prospectus for an IPO. It plans to offer fresh equity shares worth Rs 525 crore and an offer for sale of up to 43 million shares. Nykaa plans to raise Rs 4,000 crore from the IPO, which would value the company at $5 billion-$5.5 billion.

Nykaa, which sells online and has 70 physical stores, plans to use the proceeds from the IPO for expansion, by setting up new retail stores and establishing new warehouses. It also plans to retire some of its debt, which should bring down interest costs, and further shore up its profitability, the filing said.