Nykaa makes bumper stock market debut; shares top Rs 2,200, rally 100% over IPO price

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Updated: November 10, 2021 1:07 PM

FSN E-Commerce Ventures, which runs Nykaa and Nykaa Fashion, is promoted by Falguni Nayar and backed by private equity firm TPG.

Nykaa IPO, Nykaa public issue, Nykaa share listingThe IPO of Nykaa got an overwhelming response from investors across all categories.

Nykaa shares made a stellar listing on the stock exchanges today, despite the overall weak market momentum. Shares of Nykaa opened for trading at Rs 2,001 apiece, up 78% or Rs 876 per share from the issue price of Rs 1,125 per share. After a few hours into trade, Nykaa shares surged 12 per cent more to hit a fresh all-time high of Rs 2,235 apiece, taking the total market capitalisation above Rs 1 lakh crore. At the time of listing, the company had a market capitalisation of Rs 94,632.74 crore. The IPO (initial public offering) of Nykaa, concluded earlier this month, saw a massive response from investors. During the three-day bidding process, Nykaa IPO was subscribed 81.78 times.

Check live prices: FSN E-Commerce Ventures (Nykaa)

Also read: Nykaa IPO shares listing day strategy: Grey market premium soars; buy, sell, hold?

FSN E-Commerce Ventures, which runs Nykaa and Nykaa Fashion, is promoted by Falguni Nayar and backed by private equity firm TPG. Analysts say that with a diverse assortment of beauty, personal care and fashion products, Nykaa’s supremacy lies in its ability to retain and attract customers. Nykaa has witnessed sustained growth in GMV over the years and has the highest AOV. The dearth of PAT positive new age companies in India and its first mover advantage augurs well enabling Nykaa to command a higher premium. “We believe the company is capable of improving its financial metrics and cementing its position going forward,” Yesha Shah, Head of Equity Research, Samco Securities, said.

On 28 September 2021, Nykaa acquired 51 per cent of the outstanding equity shares of Dot & Key Wellness Private Limited through the subscription and purchase of equity shares. The company businesses primarily through arrangements with beauty, personal care, and fashion brands, delivery companies, manufacturers, distributors, and other vendors, including suppliers of packaging material. As of 31 August 2021, Nykaa operated 80 physical stores (comprising 79 stores for beauty and personal care products and one store for fashion products) in 40 cities of India across three formats (Nykaa Luxe, Nykaa On-Trend, and Nykaa Kiosks).

(The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)

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