New Delhi | Jagran Business Desk: The FSN E-commerce Ventures Limited, which owns the popular online platform for beauty products, Nykaa, on Thursday started the much-awaited initial public offering (IPO) and opened it for public subscription. The Nykaa IPO, the biggest initial public offering in 2021, will close the public subscriptions on November 1. The Nykaa IPO, worth Rs 5,352 crore, will be a mix of fresh issues of equity shares and an offer for sale by its existing promoters and investors.
The Nykaa issue comprises a fresh issue of equity shares worth Rs 630 crore and an offer for sale of 41,972,660 equity shares by the promoter and existing shareholders. Nykaa's shares are expected to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on November 11.
According to data from BSE, as of 11:30 am today, Nykaa's IPO was subscribed 0.24 times, whereas its retail portion has been subscribed 1.14 times, 0.05 times in the qualified institutional buyer (QIB) category and 0.03 times in the non-institutional investor (NII) category. Earlier, Nykaa said that it has already raised Rs 2,396 from its anchor investors.
Nykaa IPO: Should you invest or not? Know from expert
A majority of brokerages showed optimism about the Nykaa IPO and have given it a subscribe rating. According to MC Gupta of brokerage house SMC Global, "Nykaa has a good premium in the grey market. However, the issue price looks overpriced, but investors can invest till listing gains."
According to brokerage house Angel One, as quoted by Dainik Jagran, “Nykaa is one of the profitable unicorns in India and we believe that the company is well positioned to leverage the online beauty and fashion retail business over the next decade. Investors can put their money in this if they want."
Reliance Securities has also given a “subscribe” rating to the Nykaa IPO with a long-term view. Other brokerages such as Religare Broking and Prabhudas Lilladhar are also optimistic about the company’s IPO and long-term performance.
Nykaa is a digitally indigenous consumer technology platform founded in 2012 by former investment banker Falguni Nayar. It provides lifestyle-related products to the consumers which include their own brand products from beauty, personal care and fashion. The company posted a net profit of over Rs 61 crore in FY21 compared to a loss of over Rs 16 crore in FY20
Posted By: Talibuddin Khan