Nykaa by Falguni Nayar, one of India’s top e-commerce sites for beauty and fashion products has filed an Initial Public Offering (IPO) with SEBI – The Securities and Exchange Board of India. If you are wondering what initial public offering is? It is the process where a private company makes a public offering of its shares and they are sold to public investors.

IPO is filed when the company realizes that it has entered a stage where it can completely abide by SEC regulations. When the company goes for IPO, it will advertise the offering to the public. What initial public offering does is help a company grow and expand by raising high amounts.

Usually, when a company goes for IPO the existing investors will continue to own 70 to 80 percent of the company and the public is sold shares of the company mostly ranging from 20 or 30 percent.

Nykaa was founded in 2012 and is headquartered in Mumbai Mumbai-headquartered with more than 2,500 brands of beauty and fashion. This company will be India’s first women-led unicorn to go public. A unicorn stage is achieved when the company has reached a private valuation of approximately Rs 100 crores. Nykaa is looking to raise Rs 525 crore via fresh equity issuance. According to the reports Nykaa intends to raise a total of Rs 4,000 crore.

Nykaa is just one of the many companies from India that is going for IPO. In July, India’s food delivery app Zomato became the first unicorn startup to debut in the stock market and raise Rs138.45. Many other companies such as Flipkart, Pepperfry, Urban Company, Paytm, and Policybazar are also going to list for IPO as well. What initial public offering has done is to set Zomato apart and this could also happen to Nykaa which is the leading beauty and fashion brand in India now.

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