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Issue 82% subscribed so far, commercial part fully subscribed


The initial public offering from Nykaa owner FSN E-Commerce Ventures has been 82% subscribed so far on October 28 at 2:54 p.m. on the first day of the tender. The offer received bids for 2.18 crore shares against the IPO size of 2.64 crore shares.

Nykaa’s IPO was opened for subscription on October 28 at the price range of Rs 1,085 to Rs 1,125 per share. The call for tenders will end on November 1. The company raised nearly 2,400 crore rupees from key investors ahead of the bidding process.

Retail investors have subscribed to over 260% of their reserved share. While non-institutional subscribers wagered 36% of their reserved share. Qualified institutional buyers subscribed to 46% of their reserved share. The employee portion of the IPO was subscribed to 41 percent of the portion reserved for them.

The company aims to use the proceeds of the show to open new retail stores, invest in Nykaa Fashion, establish warehouses and other capital investments.

Brokerages have recommended going for the IPO because the company has the first-mover advantage and good prospects for the future. “Considering the company’s future prospects and the fact that it is placed in an ideal position as a first-mover advantage, we are assigning a ‘long-term subscription’ rating to this IPO,” Anand Rathi said in a report.

With a diverse assortment of beauty, personal care and fashion products, Nykaa’s supremacy lies in its ability to retain and attract customers, said Yesha Shah of Samco Securities.

“Nykaa has seen steady growth in GMV over the years and has the highest AOV. Its robust technology and content engine, its focus on capital efficiency and positive unit economics, coupled with a huge margin of penetration, provide the company with a long avenue for growth. the shortage of PAT positive new-age companies in India and its first-mover advantage bodes well for Nykaa to earn a higher premium, ”Shah added.

“We believe that the company is able to improve its financial indicators and consolidate its position in the future and therefore recommend investors to subscribe to the issue,” she said.

Motilal Oswal also recommended subscribing to the IPO, especially to investors with a high risk appetite. “Investors with a high risk appetite can subscribe to quote gains if they want a one-of-a-kind listing in the e-commerce space,” Motilal Oswal said in a report.

(According to subscription data available on exchanges until 2:54 p.m.)

(Edited by : Yashi Gupta)

First publication: STI

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