Nykaa is the TPG-backed fashion e-commerce portal. It got oversubscribe by over 82 times in its initial public offering on Monday. This indicates strong investor interest for the country’s newest company to pursue a domestic stock listing.
The 53.52 billion rupee IPO is priced at a range of 1,085 rupees to 1,125 rupees per share by FSN E-Commerce Ventures. It is the business that owns the Nykaa brand, giving it a valuation of up to $7.11 billion.
The company received bids for 40 times the number of shares it plans to sell to anchor investors in its IPO. A source told Reuters last week. Investors included Blackrock Capital Group and asset manager, Fidelity.
Nykaa’s IPO is the latest in a year that has seen over 40 companies listed on the domestic stock exchanges, the highest amount since at least 2016, as firms attempt to cash in on a market that has scaled record highs on the back of a decline in COVID-19 cases, a re-opening of the economy and ample liquidity.
According to research company RedSeer, India’s beauty and personal care market. It is expected to reach $28 billion by 2025. Nykaa has a unique position with a market share of nearly 35 percent in the online beauty and personal care market. Sneha Poddar is the associate vice president of research, broking & distribution at Motilal Oswal Financial Services Ltd, said, adding that the company is well-positioned to target huge growth potential.
Nykaa, which began selling cosmetics and grooming goods on its website, apps, and physical stores in 2012. It has developed its popularity before expanding into fashion, pet care, and household supplies. Alia Bhatt and Katrina Kaif are among the company’s investors.
Nykaa, unlike most startups, has turned a profit. With a consolidated net profit of 618.5 million rupees for the fiscal year ending March 31, 2021.
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