Nykaa IPO subscribed 1.6x on Day 1 on strong retail investor support

By Administrator_ India

Capital Sands

The IPO of FSN Ecommerce Ventures, operator of online beauty startup Nykaa, was subscribed 1.6 times on Thursday, the first day of the issue. The 26.5-million share offering has got bids for 41 million shares with the institutional investor category getting 1.4 times subscribed and the retail quota getting 3.5 times subscribed. The high net worth individual (HNI) portion was subscribed 60 percent. Nykaa’s IPO closes on Monday.

On Wednesday, the company allotted shares worth Rs 2,396 crore to 174 anchor investors at the upper price band of Rs 1,125 per share. At the top-end, Nykaa has valued at Rs 53,200 crore ($7 billion).

Blackrock, Capital Group, Fidelity, Government of Singapore, SBI Mutual Fund, HDFC MF, Tiger Global, and Nomura are some of the investors who got allotment in the anchor category.

Nykaa’s Rs 5,352-crore IPO is the biggest since that of online delivery firm Zomato, which was quite a hit among investors.

Nykaa had reported a net profit of Rs 62 crore for the financial year 2020-21 (FY21) on revenues of Rs 2,440 crore.

Despite low profitability, most brokerages have a bullish view of the company given the high growth potential.

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