Nykaa makes bumper listing with 80 percent gain, market cap crosses Rs 1 lakh crore

The IPO price of Nykaa was Rs 1,125 per share, and prior to the listing, it enjoyed 65 percent premium on the grey market.

Nykaa makes bumper listing with 80 percent gain,  market cap crosses Rs 1 lakh crore

Wednesday November 10, 2021,

2 min Read

The shares of FSN E-Commerce Ventures, the parent company of Nykaa made its debut on the stock exchange with 80 percent gain on Wednesday.

The gains were made by Nykaa when the broader market was under pressure when the NSE Nifty 50 was down by over 100 points in opening trade.

Nykaa opened at Rs 2,018, which was a gain of 80 percent as against the issue price of Rs 1,125 and market cap of Rs 1 lakh crore ($13.5 billion).

The initial public offering (IPO) of Nykaa raised Rs 5,351.92 crore through the book building route, which comprised of a fresh issue of Rs 630 crore and an offer for sale of Rs 4721.92 crore. The IPO price range was Rs 1,085-1,125.

Nykaa Team

There was much riding on Nykaa's IPO as the grey market price of the share was Rs 1,825-1,855 per share, which is around 65 percent premium from the price it was listed.

The IPO of Nykaa was greatly oversubscribed as its offer received bids of 216.59 crore equity shares as against the offer of 2.64 crore shares getting a subscription of 81.78 times.

Nykaa, founded in 2012 by former banker Falguni Nayar, is one of those rare startups which is profitable. It operates on an omni-channel model of beauty and fashion products with presence across the country.

For FY21, Nykaa reported a gross merchandise value (GMV) of Rs 4,045.98 crore, which was 50.7 percent rise compared to the previous financial year.

Its revenue grew by 38 percent in FY21 as compared to previous fiscal to touch Rs 2,440.89 core. The key highlight being its bottom-line number as it clocked a profit of Rs 61.95 crore for FY21 as against a loss of Rs 16.34 crore in FY20.

Nykaa reported an earnings before interest, tax, depreciation, and amortisation (EBITDA) of Rs 161.43 crore for FY21 with margins beings 6.61 percent.

Nykaa has become the third Indian startup in the recent past to make a stellar debut on listing day. Foodtech company Zomato saw a listing day gains of 66 percent on July 23 when it closed Rs 26 per share as against the issue price of Rs 76.

Similarly, SaaS company Freshworks, which debuted on Nasdaq on September 22, saw a day one gain of 33 percent when it shares closed at $47.55 as against the issue price of $36 per share.

Edited by Megha Reddy