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Indian beauty startup Nykaa aims IPO at valuation of above $7 billion

By Reuters

<div> <p><span class="caps">MUMBAI</span> – Indian startup <span class="caps">FSN</span> E-Commerce Ventures, which runs beauty company Nykaa, has priced its initial public offering (<span class="caps">IPO</span>) at 1,085 rupees to 1,125 rupees per share, giving it a valuation of as much as $7.11 billion.</p> <p>The company aims to raise nearly $500 million through a three-day <span class="caps">IPO</span> subscription starting from Oct. 28 to Nov 1. The <span class="caps">IPO</span> involves issuing new shares worth up to 5.25 billion Indian rupees ($70.13 million) and offering up to 43.1 million of its existing shares.</p> <p>The company’s investors include private equity firm <span class="caps">TPG</span>, Fidelity and Indian film actress Alia Bhatt. Nykaa will use the <span class="caps">IPO</span> proceeds to set up new retail stores, fund capital spending and repay debts, according to the prospectus.</p> <p>The bookrunning lead managers for the <span class="caps">IPO</span> include BofA Securities, Morgan Stanley, Kotak Mahindra Capital, Citigroup, <span class="caps">ICICI</span> Securities and JM Financial.</p> <p>Earlier this year, food-delivery firm Zomato Ltd made a stellar stock market debut.</p> <p>Other Indian startups to enter the market include Paytm, which is backed by Berkshire Hathaway Inc-backed, and hospitality company Oyo Hotels and ride-hailing firm Ola, which are both backed by SoftBank.</p> <p>($1 = 74.8600 Indian rupees)</p> <p/> </div>