NS Initial Public Offering (IPO) FSN E-commerce Ventures Ltd, which runs an online marketplace for beauty and wellness products Nykaa, was subscribed 81.78 times on the last day of subscriptions on Monday, helped mainly by huge interest from institutional investors.
The category meant for Qualified Institutional Buyers (QIBs) was subscribed 91.18 times, non-institutional investors 112.02 times and Retail Individual Investors (RIIs) 12.24 times. The initial share sale of FSN E-commerce Ventures was fully subscribed on the first day of subscription on October 28.
Finalization of the basis of share allocation is expected to take place next week on Monday, November 8, 2021. Bidders can check the status of allotment of shares in the registrar’s website link Intime India Private Limited. Here or BSE website Here.
According to market observers, Nykaa’s shares are available at a premium (GMP) ₹640 in gray market. The company’s shares are expected to be listed on the major stock exchanges NSE and BSE on November 11.
There was a fresh issue of equity shares in the IPO of FSN E-commerce Ventures ₹630 crore and Offer for Sale (OFS) of 4,19,72,660 equity shares by the promoter and existing shareholders. The price range for the offer was ₹1,085-1,125 per share.
Nykaa plans to use the proceeds from the IPO for expansion by setting up new retail stores and setting up new warehouses. It also plans to repay some of its debt, which should bring down interest costs and further increase its profitability.
Founded in 2012 by former investment banker Falguni Nair, as of August 31, 2021, Nykaa had a cumulative download of 55.8 million across all mobile applications. Nykaa had made a net profit of ₹61.9 crore in FY 2011 as compared to loss ₹16.3 crore in FY20. Nykaa opened its first physical store in 2014, and as of August 31, 2021, it has 80 physical stores in 40 cities.
Don’t miss a story! Stay connected and informed with Mint.
download
Our App Now!!
.