Nykaa IPO was subscribed 81.78 times on the last day of the initial share sale that closed on November 1
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Shares of Nykaa made a strong market debut on the Indian stock exchanges on Wednesday. The stock started trading at a premium of over 82% at ₹2,054 per share on the NSE as compared to its IPO issue price of ₹1,125 apiece. Its market capitalization crossed ₹1 lakh crore in early deals. The stock closed over 10% higher at ₹2,208 per share on its first day on the BSE.
The initial public offering of FSN E-Commerce Ventures Ltd, which runs an online marketplace for beauty and wellness products Nykaa, was subscribed 81.78 times on the last day of subscription, mainly helped by huge interest from institutional investors. The price range for the offer was ₹1,085-1,125 per share.
The three-day share sale opened for subscription on October 28 and concluded on November 1. The IPO comprised of equity shares aggregating up to ₹630 crore (fresh issue) and an offer for sale (OFS) of up to 41,972,660 equity shares by promoters or existing shareholders. Many brokerages had recommended to subscribe to Nykaa's public issue for long-term.
Founded in 2012 by former investment banker Falguni Nayar, as of August 31, 2021, Nykaa had cumulative downloads of 55.8 million across all their mobile applications. Unlike most startups, Nykaa has also achieved profitability, posting a consolidated net profit of ₹61 crore for the year ended March 31, 2021 (FY21) as compared to a loss of ₹16.3 crore in FY20.
The company has a diverse portfolio of beauty, personnel care and fashion products, including its owned manufactured brand products under its two business verticals -- Nykaa and Nykaa Fashion.
Nykaa said it plans to use the proceeds from the IPO for expansion, by setting up new retail stores and establishing new warehouses. The e-commerce beauty giant also plans to retire some of its debt, which should bring down interest costs, and further shore up its profitability.
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