Kaya to raise ₹300 crore through rights issue

livemint.com:

MUMBAI : Kaya Ltd, a skincare and haircare services provider, announced on Tuesday that its board has approved a rights issue to raise ₹300 crore. The issue will be offered to the existing shareholders of the company on a record date to be specified, according to an exchange filing. On 20 October, the company had said its board would consider and approve various fund-raising options.

Kaya was founded in 2003 as a subsidiary of Marico Ltd. It became an independent entity in 2013 after being demerged from Marico. Harsh Mariwala, Marico chairman, holds over 50% stake in Kaya.

With a market capitalization of ₹448 crore, Kaya has underperformed the index, delivering a -5% return compared to the index’s 9% return. It has over 70 clinics across 26 cities in India and 23 clinics in three Middle East countries. The skincare services provider has a portfolio of advanced skin care, hair care and body care solutions spanning laser hair reduction, brightening and pigmentation, acne and scars, hair loss, beauty facials, and body contouring, among others.

The company has a wide spectrum of retail products that range from daily essentials, acne solutions, lightening and brightening, sun care, anti-aging and hair loss, hair volumizing and dandruff. Kaya products also retail via e-commerce, across Nykaa, Amazon, Flipkart, Myntra, etc. The skincare and haircare specialist’s consolidated loss narrowed to ₹10.3 crore in Q1FY24 from ₹25.7 crore in the corresponding quarter of the previous fiscal.