Nykaa IPO subscribed 82 times

The three-day issue, excluding anchor allocation, took subscription which was 82.42 times the issue size.

Stock exchange data showed that as of 5.30 pm on Monday, Nykaa had received applications for approximately 2.17 billion shares, excluding anchor allotments, compared to an issue size of 26.28 million shares.

at the upper end of ₹1085-1125 price band for the issue, IPO bids for approx. ₹2.43 trillion. The data shows that the institutional investor category received bids for 1.31 billion shares and the book was subscribed 92.17 times.

The non-institutionalized segment with higher net worth was subscribed 112.51 times. Demand for retail individual investors, whose investments cannot be high ₹The IPO of 2 lakhs was 12.29 times.

Merchant bankers were buoyed by the IPO response despite weakness and volatility in the secondary markets. In addition, the huge gray market premium – indicating sharp listing gains – also attracted a large number of investors.

Nykaa shares were being quoted at a premium in Mumbai’s gray market ₹560-570 per share on Monday, the two dealers said on conditions of anonymity.

The firm got nearly 40 times its bid by selling shares to anchor investors last Wednesday. total of ₹Shares worth Rs 2,396 crore were available in the anchor category and a slew of large foreign and domestic funds had submitted higher value bids. ₹95,000 crores.

“Nykaa’s online BPC space is expected to trade at a steep reduction premium (trading at 3x FY24E EV/sales average) over its global counterparts. could trade on sale, purely based on its core BPC offering. However, the issue price is already at 10.2x FY24 EV/sales, factoring in the premium multiple backed by growth in the fashion business”, Elara Capital said in a note to its investors.

“Nevertheless, successful execution in the fashion segment is the key to valuation re-rating in the mid- to long-term. Expansion discounts in fashion could impact profitability given the huge investment in marketing. 12-14x multiple for a year Re-rating forward EV/sales should spread over time on Nykaa’s multi-platform approach (successful execution in Nykaa Man and Nykaa fashion), which is currently a niche platform,” Elara added in the report.

Meanwhile, Fino Payments Bank’s IPO received a weak response on its second day as well, with the lender receiving just 0.81x bids. Retail investors applied 434% while high net investors applied only 4%. Qualified institutional buyers are yet to place issue orders.

On Monday, two new IPOs – SJS Enterprises Ltd and PB Fintech Ltd – opened for subscription. PB Fintech Ltd which is planning to raise ₹5700 crores got 58% response overall. The share of institutional investors and high net worth investors accounted for 62% and 7%, respectively. Retail investors fully subscribed on the first day with a bid of 1.23x.

SJS Enterprises took 32 per cent subscription on the first day of the IPO. Retail investors got 64% membership while high net worth investors got only 1% subscription. QIB’s portion is yet to be ordered for the issue.

Sigachi Industries’ IPO got 9.52x subscription on the first day. The retail segment was subscribed 16.81 times while the high net worth investor segment was subscribed 4.46 times. Institutional investors subscribed 57%.