02 Nov , 2021 By : Kanchan Joshi
The initial public offering (IPO) of 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 subscription on Monday, mainly helped 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.
The finalization of basis of share allotment is expected to take place next week on Monday, November 8, 2021 and the initiation of refunds is likely to take place on November 9. The shares is expected to be credited to the bidders who received allotment on November 10.
As per market observers, Nykaa shares are available at a premium (GMP) of Rs640 in the grey market. The company's shares are expected to list on leading stock exchanges NSE and BSE on November 11.
The IPO of FSN E-Commerce Ventures had a fresh issue of equity shares worth Rs630 crore and an offer for sale (OFS) of 4,19,72,660 equity shares by the promoter and existing shareholders. The price range for the offer was Rs1,085-1,125 per share.
Nykaa plans to use the proceeds from the IPO for expansion, by setting up new retail stores and establishing new warehouses. It also plans to retire some of its debt, which should bring down interest costs and further shore up its profitability.
Founded in 2012 by former investment banker Falguni Nayar, as of August 31, 2021, Nykaa had cumulative downloads of 55.8 million across all their mobile applications. Nykaa had posted a net profit of rs61.9 crore in FY21 compared to a loss of Rs16.3 crore in FY20. Nykaa opened their first physical store in 2014, and has 80 physical stores across 40 cities as of August 31, 2021.
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