Nykaa makes a splash on the stock market, debuting at a 79 percent premium.
Nykaa's parent company, FSN E-Commerce Ventures, has made a solid start on the stock market following a positive reception to its first public offering.
FSN E-Commerce Ventures Limited, the parent company of Nykaa and Nykaa Fashion, floated on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) at a significant premium of over 79 percent (NSE). Following the blockbuster listing, Nykaa's market capitalization has surpassed Rs 1 lakh crore.
Nykaa's stock began trading on the BSE at Rs 2001 per share and was hovering around Rs 2002-Rs 2003 at 10:30 a.m. The NSE listing price was Rs 2,018, but it has now fallen to Rs 2,002 and is now selling at a premium of almost 78%.
Nykaa shares were selling at a big premium on the grey market a day before the listing, thus the successful listing was generally predicted. Because of the listing profits, people who successfully bid for Nykaa's IPO have gotten large returns today.
Given Nykaa's position in the online beauty and personal care (BPC) industry, most analysts have previously given the IPO a subscribe rating for listing and long-term gains.
BUMPER LISTING AFTER A SUCCESSFUL INITIAL PUBLIC OFFERING
Investor demand was strong for the Rs 5,352 crore IPO, which was oversubscribed by more than 81 times between October 28 and November 1. It received bids for nearly 216 crore equity shares, despite the fact that the offered size was only 2.64 crore.
Falguni Nayar, a former investment banker, created Nykaa in 2012. Nykaa is one of the most prominent online beauty and personal care platforms, featuring a wide range of products. Nykaa is known for providing clients with a content-driven, lifestyle retail experience.
In FY21, the company made a net profit of more than Rs 61 crore, compared to a loss of more than Rs 16 crore in FY20. Due to improved economic activity following the epidemic, its revenue from operations returned in FY21. In FY21, revenue increased by 38% year on year to Rs 2,453 crore.