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Updated on: Wednesday, November 10, 2021, 12:48 PM IST

Nykaa founder Falguni Nayar becomes wealthiest self-made billionaire; 'make women entrepreneurs proud', says Kiran Mazumdar-Shaw

Falguni Nayar, Founder, Nykaa, has become India's self-made wealthiest billionaire, according to the Bloomberg Billionaires Index. | LinkedIn

Falguni Nayar, Founder, Nykaa, has become India's self-made wealthiest billionaire, according to the Bloomberg Billionaires Index. | LinkedIn

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Falguni Nayar, Founder, Nykaa, has become India's self-made wealthiest billionaire, according to the Bloomberg Billionaires Index.

Nayar owns about half of Nykaa, and now worth about $6.5 billion as shares of the firm surged as much as 89 percent when they started trading Wednesday, Bloomberg reported.

According to a Bloomberg report quoting Nykaa’s filings, its sales surged 35 percent to $330 million in the year ended in March, making it a profitable company, which is rate among internet startups making a debut in the public markets.

'Fantastic' debut, says Kiran Mazumdar-Shaw

Kiran Mazumdar Shaw congratulated Nayar and termed Nykaa's debut 'fantastic' on Twitter. "You make us women entrepreneurs very proud," she said.

Nykaa was founded in 2012 by Falguni Nayar, who is married to KKR India head Sanjay Nayar.

A former investment banker, Nayar nurtured entrepreneurial dreams as a student. She set off to do an MBA from IIM Ahmedabad and her career took off with Kotak Mahindra as an investment banker. In 2005, she was the managing director of Kotak Mahindra Capital. In 2012, she quit it all to start her entrepreneurial journey with Nykaa – an online beauty retail of multi-brands.

Nykaa provides a curated range of beauty products for women and since then expanded to fashion and men's wellness and grooming. As an omnichannel lifestyle retailer, it claims over 5 million monthly active users and handles over 1.5 million orders a month, hawking over 1,500 brands and over 1.3 lakh products, available on its website, app and stores.

While Nykaa Men offers beauty and grooming products, Nykaa Pro caters to all professional beauty needs with special access and offers, and Nykaa Beauty is its in-house beauty products offering cosmetics across lips, eyes, face, and nails.

It also has a skin and body care range apart from bath & body collection, naturals, and fine fragrances.

Nykaa shares listed on Dalal Street

Shares of FSN E-Commerce Ventures, the company which owns the Nykaa brand, shares were listed on Dalal Street on Wednesday, November 10 with a huge premium of over 79 percent against the issue price of Rs 1,125 on Wednesday.

Nykaa shares opened for trading at Rs 2,018 on the National Stock Exchange, up 79 per cent from its issue price of Rs 1,125 per share.

On the BSE, Nykaa shares opened for trading at Rs 2,001, up 78 per cent from the issue price.

Nykaa shares rose nearly 89 per cent to hit an intraday high of Rs 2,129 on the NSE. With the surge in share price, Nykaa's market capitalization crossed Rs 1 lakh crore at the day's highest level.

The company's market valuation remained at Rs 97,754.06 crore on BSE. The initial share-sale of FSN E-Commerce was subscribed 81.78 times earlier this month. It received bids for 2,16,59,47,080 shares against 2,64,85,479 shares on offer and raised Rs 5,352 crore through the issue.

The Rs 5,352-crore IPO had a price range of Rs 1,085-1,125 per share.

The listing comes at a time when companies attempt to cash in on an Indian market that has scaled record highs on the back of a decline in COVID-19 cases, a reopening of the economy and ample liquidity. The company, which functions in two broad segments, namely beauty and personal care and apparel & accessories, was incorporated in 2012 and swiftly became a popular name among Indian consumers.

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Published on: Wednesday, November 10, 2021, 12:35 PM IST
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