Nykaa shares saw a stellar debut on Dalal Street on Wednesday, November 10. Nykaa share opened at Rs 2,001 on BSE, an increase of 77.87 per cent premium over the higher end of the issue price. On NSE, Nykaa stock opened made a debut at Rs 2,018, up over 79.83 per cent. The unique inventory-led business model and healthy share in the premium beauty and personal care segment in India has attracted an overwhelming response from investors.
Nykaa IPO opened for subscription from October 28-November 1, 2021. The company planned to raise Rs 5,352 crore from its maiden public offer. Nykaa operator FSN E–Commerce Ventures has the price band at Rs 1,085-1,125 per equity share. Nykaa IPO comprises of Rs 630 crore and an offer for sale (OFS) of 4.19 crore equity shares by several shareholders, including the promoters and some investors. The net proceeds from Nykaa IPO will go towards two subsidiaries — FSN Brands and or Nykaa Fashion and for setting up new retail stores.
Nykaa IPO received stellar response from investors when it had opened for subscriptions. Nykaa IPO received bids of over 216.59 crore shares against the total issue size of over 2.64 crore shares, data available with the National Stock Exchange (NSE) showed. Nykaa IPO was subscribed whopping 82 times. The portion for qualified institutions bidders subscribed over 91 times while the quota reserved for non-institutional buyers’ quote received bids for 112 times. The portion set aside for retail subscribers, was booked over 12.24 times.
“With a diverse assortment of beauty, personal care and fashion products, Nykaa’s supremacy lies in its ability to retain and attract customers. Nykaa has witnessed sustained growth in GMV over the years and has the highest AOV. Its robust technology and content engine, focus on capital efficiency and positive unit economics coupled with immense headroom for penetration, provide the company a long runway for growth. The dearth of PAT positive new-age companies in India and its first-mover advantage augurs well enabling Nykaa to command higher premium. We believe the company is capable of improving its financial metrics and cementing its position going forward and hence recommend investors Investors may book their 50% position at the time of listing of Nykaa IPO and hold the remaining position for a longer period,” said Ravi Singh, head of research & vice president, ShareIndia.
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