Nykaa, a child company of FSN E-commerce Ventures, has concluded its three-day-long initial public ( Nykaa IPO) offering on Monday, 1 November 2021. Nykaa, the company operating as a content-focused e-commerce platform for beauty cosmetics and personal care products, commenced its share bidding on 28 October 2021.
How Nykaa IPO Performed In Its 3 Days Tenure
The Initial Shares of Nykaa IPO received a good response from the investors on the first day itself. On day two, the Rs 5352 crore Initial Public Offering of Nykaa was subscribed more than 4.8 times. The investors made bids for 12,77,48,892 IPO shares against the total issued 2, 64,85,479 shares.
The third day also saw a considerable share demand from the investors. The Nykaa shares were subscribed more than twenty-four times until the market closing time. Nykaa had set the shares price at Rs 1085 – 1125 for each share. The Initial Public Offering (IPO) of Nykaa encompasses newly issued shares amounting to Rs 630 crore. The leading player in the personal care segment is gripping a massive premium of about Rs 570 per share – 50 per cent of its actual share value.
According to the data posted on National Stock Exchange, Nykaa IPO received 10 per cent subscriptions before the clock struck 12 in noon on the last day of bidding. The shares reserved for Qualified Institutional Buyers marked 7.3 times subscription. On the other hand, the shares reserved for Non-Institutional Buyers received 9.23 times subscription. Also, the retail investor segment was subscribed 9.23 times.
Nykaa IPO shares distribution will be finalized on 8 November 2021and transferred to the Demat accounts of the IPO subscribers. Nykaa will also be traded on a Grey Market – an unofficial place of trading company shares before making it to the stock exchange market. Nykaa’s shares were trading on the grey market with a premium of Rs 570 for each share. The company will be officially listed on the National Stock Exchange and Bombay Stock Exchange on 11 November 2021.
Morgan Stanley India, Citigroup Global Markets India, Kotak Mahindra Capital, JM Financial, ICICI Securities, and BofA Securities India are the Merchant Bankers of Nykaa IPO. Nykaa aims to utilize the funds received from IPO to repay its debts, setting up a few new warehouses and retail stores.
Nykaa had registered losses during the pandemic era due to the lockdown. However, the e-commerce company revived itself from losses in 2021. Company researchers have also shown faith in Nykaa’s growth over the long term considering its business strategies, the scope of improvement, and future expansion plans.
‘Considering the powerful leadership, profitability, scale of operations, we acknowledge that Nykaa has established an industry itself. So, we suggest subscribing to the Nykaa shares for long term gains,’ Hem Securities stated.
Another brokerage company Prabhudas Liladhar suggested subscribing to Nykaa’s shares, mentioning their belief in Nykaa’s performance in the future.
Nykaa, founded by the past investment banker Falguni Nayar, created a place in the already stiff market with its content focused product selling strategy. The e-commerce platform sells more than 1.8 million products on the platform, including a few products exclusively produced by Nykaa.
