Nykaa makes strong stock market debut
Nykaa Share Price NSE: Shares of Nykaa made a strong listing on the stock exchanges today. Shares of Nykaa started trading at a premium of over 82% at Rs 2,054 per share on the NSE, as compared to its IPO issue price of Rs 1,125 per share. Shares of Nykaa got listed on BSE at Rs 2,063. Also the market capitalization of the company on listing crossed Rs 1 lakh crore.
The Rs 5,351 crore IPO of Nykaa’s parent company FSN E-Commerce Ventures Ltd was subscribed more than 82 times. The company had received bids for 2,16,59,47,080 shares as against 2,64,85,479 shares. 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 IPO of FSN E-commerce Ventures had fresh issue of equity shares worth Rs 630 crore and offer for sale (OFS) of 4,19,72,660 equity shares by the promoter and existing shareholders. The offer price range was Rs 1,085-1,125 per share. FSN E-Commerce Ventures Ltd had raised Rs 2,396 crore from anchor investors prior to the IPO.
According to the draft papers, the company plans to use the proceeds of the IPO for expansion, opening of new retail stores and setting up of new warehouses. It also plans to repay some of its debt, which should bring down interest costs and further enhance its profitability.
In addition, the company plans to deploy IPO proceeds for marketing and promotional activities to strengthen its 13 owned brands such as Nykaa Cosmetics, Nykaa Naturals and K Beauty, as well as to establish and promote new brands. She is making.
The company has a diversified portfolio of beauty, personnel care and fashion products, which includes its proprietary manufactured brand products under its two business verticals – Nykaa and Nykaa Fashion.
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