Nykaa shares listed at Rs 2,063 on BSE, premium of almost 80% over issue price of Rs 1125

Shares of Nykaa were listed for the first time on the Indian stock exchanges on Wednesday and made a strong start as the stock began its trade at Rs 2,054 per share. Its price per share on the NSE is almost double its IPO’s issue price of Rs 1,125 per share. As of now, the Nykaa shares are placed in the market at Rs 2,063 on the BSE and with the market capitalisation on the positive side of Rs 1 lakh crore. The initial public offering of FSN E-Commerce Ventures Ltd was subscribed 81.78 times during the last day of its subscription due to the heavy interest of institutional investors. The company is the operator of the beauty and wellness products of Nykaa and the price range was placed between Rs 1,085-1,125 per share. Nykaa sells its products both online and through physical stores.

Nykaa’s IPO was available for subscription from October 28 to November 1. The IPO consisted of equity shares which aggregated to a total of Rs 630 crore as the fresh issue and an offer for sale of 41,972,660 equity shares by existing shareholders. As per several stock experts, Nykaa’s public issue was perfect for a long-term subscription. Nykaa announced earlier that the company will use the proceeds from the IPO for a possible expansion and establish new retail stores and warehouses. The company is also planning to repay some of its debt.

More about the company

Nykaa was founded in 2012 by Falguni Nayar, a former investment banker. Nykaa has been downloaded more than 56 million times across all their mobile applications. Nykaa has become completely sustainable as the brand posted a profit of Rs 61 crore for the fiscal year 2020-2021, which ended on March 31, 2021. The company posted a loss of Rs 16.3 crore in FY20 due to the pandemic. The company has a large array of products in the fields of beauty, personnel care and fashion products. The company sells the products of popular and premium brands and has a line of its own manufactured products under Nykaa and Nykaa Fashion.

(Image: Hemaganj Twitter/ PTI)