The issue price of the shares was in the range of INR 1085- 1125 per share, with a lot size consisting of 12 shares amounting to INR 13,500. The subscription in retail category was 12.24 times, in the QIB category 91.18 times and in NII category 112.02 times, taking the whole subscription to 81.78 times.
The proceeds of issue were aimed to use for investment in their subsidiaries (FSN Brands, Nykaa Fashion) for setting up new stores, towards capital expenditure, repayment or prepayment of borrowings, enhancement of visibility and general corporate purposes.
The IPO saw a magnificent listing on the stock exchange by gaining 80% premium, thereby opening at INR 2001 apiece. It closed at a day’s high of INR 2206 per share. The market capitalization of Nykaa exceeded INR 1040 billion.
Founder, MD and CEO Falguni Nayar is very optimistic about the performance of Nykaa. She maintains that beauty and fashion are very high growth businesses with large market size. Nykaa already holds a bunch of brands that they are continuously building. They have recently acquired Dot & Key that adds to their skincare offering. Besides this, Nykaa has entered into inorganic acquisition of 20Dresses, a western wear brand and Pipa Bella, a jewellery brand. The holistic business model of Nykaa makes it a potential investment opportunity.
About the company:
Nykaa is an Indian e-commerce company, founded by Falguni Nayar in 2012 and headquartered in Mumbai. It sells beauty, wellness and fashion products across websites, mobile apps and 76 offline stores. As of 2020, it was valued at ₹85 billion (US$1.1 billion) making it the first unicorn startup headed by a woman in India.
It sells products which are manufactured in India as well as internationally. In 2015, the company expanded from online-only to an omnichannel model and began selling products apart from beauty. In 2020, it retails over 2,000 brands and 200,000 products across its platforms.
(Source: economictimes.com)
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