The initial public offering (IPO) of FSN E-Commerce Ventures Ltd, which runs online marketplace for beauty and wellness products Nykaa, was subscribed more than 82 times at the end of the final day of bidding. Ahead of its IPO, Nykaa raised ₹2,396 crore from anchor investors.
Founded by former investment banker Falguni Nayar, the woman-led unicorn offers 4,000 beauty, personal care and fashion brands through its website, app and 80-odd brick-and-mortar stores.
Nykaa IPO's finalization of basis of share allotment is expected to take place next week on Monday, November 8, 2021. The bidders can check the share allotment status in the registrar's website Link Intime India Private Limited here or BSE website here.
As per market observers, Nykaa shares are available at a premium (GMP) of ₹640 in the grey market today. The company's shares are expected to list on leading stock exchanges NSE and BSE on November 11.
The three-day share sale opened for subscription on October 28 and concluded on November 1. The IPO comprised of equity shares aggregating up to ₹630 crore (fresh issue) and an offer for sale (OFS) of up to 41,972,660 equity shares by promoters or existing shareholders. The price band of the public issue was fixed at ₹1,085-1,125 per share.
Launched in 2012, Nykaa grew popular by selling cosmetics and grooming products on its website, apps and through its physical stores, before expanding into fashion, pet care and household supplies. Unlike most startups, Nykaa has also achieved profitability, posting a consolidated net profit of ₹61 crore for the year ended March 31, 2021 (FY21) as compared to a loss of ₹16.3 crore in FY20.
Nykaa plans to use the proceeds from the IPO for expansion, by setting up new retail stores and establishing new warehouses. It also plans to retire some of its debt, which should bring down interest costs, and further shore up its profitability.
