New Delhi: FSN E-Commerce Ventures runs the online marketplace for beauty and wellness products Nykaa had its initial public offering (IPO) subscribed to over 82 times at the end of the final day of bidding. Prior to the IPO, Nykaa raised Rs 2,396 crore from anchor investors. Besides, the issue was fully subscribed on the first day of the sale.
As per the cumulative bid data of BSE and NSE till 5:00 PM on Monday, the QIB segment was subscribed 92 times, HNI 112.51 times while retail 12.29 times and employees 1.88 times.
The IPO contains a fresh issue of equality shares valued at Rs 630 crore and an offer for sale (OFS) of 41,972,660 equity shares by the promoter and existing shareholders.
According to the market experts, Nykaa shares are available at a premium (GMP) saw a downfall from the previous day, however, still managed to remain strong around Rs 570 in the grey market on Monday. Notably, the company’s shares are likely to be listed on leading stock exchanges NSE and BSE on November 11.
“Looking after scale of operations, strong management team, profitable concern & high growth prospects in the industry due to large under penetration, we believe that company has created an industry itself. Therefore, we recommend “Subscribe” on issue for listing gain as well as long term,” stated Hem Securities.
Being founded in 2012 by the former investment banker Falguni Nayar, Nykaa plans to use the proceeds from the IPO for expansion, by setting up new retail stores and establishing warehouses. Further, it also plans to withdraw some of its debts, which might bring down interests costs and raise its profitability.
“We believe Nykaa’s entry into fashion segment holds promise with focus on premium customers, curated and managed marketplace offering over 1.8 million SKUs, private labels like NYKD, Pippa Bella, 20 dresses and industry leading AOV of ₹3977 and ~25% contribution to GMV in 5MFY22,” brokerage firm Prabhuas Lilladher that recommended a ‘Subscribe’ Rating to IPO of FSN E-Commerce Ventures which operates Nykaa stated in a note.
