Nykaa shares made a stellar listing on the stock exchanges today, despite the overall weak market momentum. Shares of Nykaa opened for trading at Rs 2,001 apiece, up 78% or Rs 876 per share from the issue price of Rs 1,125 per share. On listing, the company had a market capitalisation of Rs 94,632.74 crore. The IPO (initial public offering) of Nykaa, concluded earlier this month, saw a massive response from investors. During the three-day bidding process, Nykaa IPO was subscribed 81.78 times.
Also read: Nykaa IPO shares listing day strategy: Grey market premium soars; buy, sell, hold?
FSN E-Commerce Ventures, which runs Nykaa and Nykaa Fashion, is promoted by Falguni Nayar and backed by private equity firm TPG. Analysts say that 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. The dearth of PAT positive new age companies in India and its first mover advantage augurs well enabling Nykaa to command a higher premium. “We believe the company is capable of improving its financial metrics and cementing its position going forward,” Yesha Shah, Head of Equity Research, Samco Securities, said.
On 28 September 2021, Nykaa acquired 51 per cent of the outstanding equity shares of Dot & Key Wellness Private Limited through the subscription and purchase of equity shares. The company businesses primarily through arrangements with beauty, personal care, and fashion brands, delivery companies, manufacturers, distributors, and other vendors, including suppliers of packaging material. As of 31 August 2021, Nykaa operated 80 physical stores (comprising 79 stores for beauty and personal care products and one store for fashion products) in 40 cities of India across three formats (Nykaa Luxe, Nykaa On-Trend, and Nykaa Kiosks).
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