TPG-backed FSN E-Commerce Ventures’ maiden public offer was oversubscribed by 1.64 times till the early hours of October 29, the second day of bidding. The offer closes on October 30 (Monday).
Investors have put in bids for 5.34 crore equity shares against the IPO size of 2.64 crore equity shares.
The IPO opened on October 28 at a price band of Rs 1,085-1,125. Nykaa aims to raise over Rs 5,350 crore.
Retail investors subscribed 4.74 times to the IPO, and non-institutional subscribers put in bids for 86 percent of their reserved portion. Qualified institutional buyers subscribed 171 percent of their reserved portion. Meanwhile, Nykaa's employees have subscribed to 85 percent of the portion reserved for them, according to news reports.
On October 28, at 11.30 AM, the retail portion was oversubscribed the issue 1.3 times within an hour of opening as the retail quota saw 66,28,752 bids as against allotted quota of 47,53,187 shares for this segment, according to NSE consolidated data
At 2.45 PM on October 28, Nykaa IPO was subscribed 0.69 times with the retail portion fully booked 2.60 times, according to BSE data. The portion reserved for employees has been subscribed 0.40 times, non institutional investors (NIIs) 0.34x and QIBs 0.24times.
The Nykaa IPO comprises of a fresh issue of equity shares worth Rs 630 crore and an offer for sale (OFS) of 41,972,660 equity shares by promoter and existing shareholders.
The company 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. In addition, the company is planning to deploy the proceeds of the IPO for marketing and promotional activities, to focus on strengthening its 13 owned brands such as Nykaa Cosmetics, Nykaa Naturals and Kay Beauty along with establishing and promoting new brands.
FSN E-Commerce Ventures Ltd, which was founded in 2012 by Falguni Nayar, is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers. The company has a diverse portfolio of beauty, personnel care and fashion products, including its owned manufactured brand products, under its two business verticals -- Nykaa and Nykaa Fashion.
The company has reported a net profit of Rs 61.94 crore for FY21 compared to a net loss of Rs 16.34 crore in FY20. Its revenue from operations jumped to Rs 2,441 crore in FY21 from Rs 1,768 crore in FY20.
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