BackNykaa IPO subscribed fully on day 1
The overall book, excluding the anchor allotment, was subscribed 1.56 times
PremiumMUMBAI : The initial share sale of Nykaa owner FSN E-Commerce Ventures Ltd was fully subscribed on Thursday, the first of the three-day offering that closes on 1 November.
The overall book, excluding the anchor allotment, was subscribed 1.56 times. As of 5pm, the institutional investor category was subscribed 1.40 times the 14.20 million shares on offer. The non-institutional category comprising high net worth individuals drew 60% or 0.60 times the shares reserved for the category.
Retail individual investors, whose investments cannot exceed the maximum cap of ₹2 lakh in an IPO, applied for 351% or 3.51 times the shares on offer, stock exchange data showed.
"There are no peers in the listed space that are engaged in the business similar to that of FSN. At higher price band of Rs. 1,125, the company is demanding an EV/TTM Sales multiple of 21.6x, which seems to be reasonably priced. Considering the growth potential in the beauty & personal space and also the lower e-commerce penetration, we feel that FSN has a huge untapped market", according to Choice Broking note.
The firm on Wednesday raised ₹2396 crore from anchor investors by allotting 21.30 million shares at ₹1125 a share, according to BSE data. BlackRock Global Funds, Fidelity Funds, Nomura, Government of Singapore, Monetary Authority of Singapore, Canada Pension Plan Investment Board, T Rowe Price, Tiger Global Investments Fund, Goldman Sachs and Morgan Stanley are among the investors that participated in the anchor book.
The firm has fixed the price band of its initial public offering (IPO) at ₹1085-1125 a share. It is looking for a valuation of ₹52,574 crore (around $7.4 billion).
The firm has increased its fresh issue to ₹630 crore from ₹525 crore earlier. The offer for sale has reduced to 41.97 million shares from 43.11 million shares. The firm plans to list on 11 November.
On the upper end price band, the firm will raise around ₹5352 crore.
The OFS comprises upto 4.8 million shares by Sanjay Nayar Family Trust, upto 5.42 mln shares by TPG Growth IV SF Pte, upto 4.84 mln shares by Lighthouse India Fund III, upto 2.54 mln shares by Yogesh Agencies & Investment, upto 9.14 lakh shares by JM Financial and Investment Consultancy Services, upto 7.05 mln shares by Sunil Kant Munjal, upto 10.20 mln shares by Harindarpal Singh Banga jointly with Indra Banga, upto 2.34 mln shares by Narotam Sekhsaria.
Currently, Falguni Nayar Family Trust and Sanjay Nayar Family Trust hold 22.33% and 23.67% stake respectively in the firm. TPG Growth has 3.48% while Lighthouse India Fund II 3.11%. Sinil Kant Munjal has 4.53% stake while Harindarpal Singh Banga jointly with Indra Banga has 8.7% stake in the firm.
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