New Delhi: The initial public offering (IPO) of FSN E-Commerce Ventures Ltd, which operated an online marketplace for beauty and wellness products Nykaa, has been subscribed more than 82 times on the final day of the bidding. Nykaa has raised Rs 2,396 crore from anchor investors.
The shares are expected to get listed on stock exchanges on November 11, according to publication Mint.
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The share allotment status is expected to take place on November 8. The bidders can check the share allotment status on the registrar's website Link Intime India Private Limited or BSE website. Nykaa shares are available at a premium (GMP) of Rs640 in the grey market on Monday, according to publication Mint.
After the share allotment is finalised, the ineligible investors will get their refunds by November 9. The equity shares will be credited to the Demat accounts of eligible investors on the next day, November 10
The three-day share sale opened for subscription on October 28 and concluded on November 1. The IPO comprised of equity shares aggregating up to Rs630 crore (fresh issue) and an offer for sale (OFS) of up to 41,972,660 equity shares by promoters or existing shareholders. The price band of the public issue was fixed at Rs1,085-1,125 per share.
Headquartered in Mumbai, FSN E-Commerce Venture was incorporated in 2012. Founded by former investment banker Falguni Nayar, the beauty e-commerce platform offers beauty, fashion, and personal care products.
What was the response to Nykaa IPO?
The portion reserved for the qualified institutional buyers (QIBs) was subscribed 91.18 times. The non-institutional investors put bids 112.02 times, while the retail individual investors (RIIs) booked the issue 12.24 times. The company has fixed the price band for the IPO at Rs 1,085-1,125 apiece. At an upper price band of Rs 1,125, Nykaa IPO could raise up to Rs 5,352 crore from the issue.
Launched in 2012, Nykaa grew popular by selling cosmetics and grooming products on its website, apps, and through its physical stores, before expanding into fashion, pet care, and household supplies. Unlike most startups, Nykaa has also achieved profitability, posting a consolidated net profit of Rs61 crore for the year ended March 31, 2021 (FY21) as compared to a loss of Rs 16.3 crore in FY20.