Nykaa IPO ends day 1 on a strong note
The three-day initial public offering (IPO), which closes on 1 November, was subscribed 1.56 times, excluding the anchor allotment
The initial share sale of FSN E-Commerce Ventures Ltd, which runs Nykaa, opened to a robust response on Thursday as investors bet on the future growth prospects of the online beauty and personal care startup.
The three-day initial public offering (IPO), which closes on 1 November, was subscribed 1.56 times, excluding the anchor allotment. As of 5pm, the institutional investor category received subscriptions of 1.4 times the 14.2 million shares on offer. The non-institutional category, comprising high net-worth individuals, drew 60% or 0.6 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 ₹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,” Choice Broking said in a note.
FSN on Wednesday raised ₹2,396 crore from anchor investors by allotting 21.30 million shares at ₹1,125 apiece, 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 investors who took part in the anchor book.
The company is selling shares in the offering in the price band of ₹1,085-1,125 apiece. It will achieve a market capitalization of ₹52,574 crore at the upper end of the price band.
FSN has expanded the fresh issue to ₹630 crore from ₹525 crore previously. It has also reduced the offer for sale to 41.97 million shares from 43.11 million shares. The firm plans to list on 11 November.
The company will raise ₹5,352 crore at the upper end of the price band.
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