Nykaa share price almost doubles on stock market debut

The share price of Nykaa on day one of stock market listing ended with 96 percent gain when compared to IPO band with a market capitalisation of Rs one lakh crore.

Nykaa share price almost doubles on stock market debut

Wednesday November 10, 2021,

2 min Read

The shares of Nykaa had a blockbuster listing on the stock markets on Wednesday with close to 100 percent rise in its share price more than living up to the expectations of the investors.

Nykaa had priced its initial public offering (IPO) at Rs 1,125 per share, and it rose by 80 percent at the opening on the Indian stock markets.

During the day, the share price of Nykaa never really dipped and closed at Rs 2,208 on the National Stock Exchange (NSE), which is a 96 percent gain to its IPO price. It was a 9.42 percent gain when compared to the pre-market open of Rs 2,018 per share.

Prior to the listing, Nykaa shares had commanded a premium of 60-65 percent in the grey market.

The market capitalisation of Nykaa touched Rs 1,04,42, 232.93 lakh crore. The volume of shares traded was 3,43,24,631 while the value was Rs 7,17,230.33 lakh.

Could 2021 turn out to be the Year of the IPOs?

The expectation was running high on Nykaa’s IPO as it was one of those rare profit making startups with EBITDA or gross profit margin of 6.61 percent for FY21.

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

The revenue of the beauty & personal care brand grew by 38 percent in FY21 as compared to previous fiscal to touch Rs 2,440.89 core. The key highlight being its bottomline number as it clocked a profit of Rs 61.95 crore for FY21 as against a loss of Rs 16.34 crore in FY20.

The run up to Nykaa’s stock market listing has been very strong as its IPO was oversubscribed 81.78 times, receiving 59 crore equity shares as against the offer of 2.64 crore shares.

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 4,721.92 crore. The IPO price range was Rs 1,085-1,125.

Nykaa joins the likes of Zomato and Freshworks, which also had a stellar listing on the stock markets with valuations above $10 billion.

Edited by Megha Reddy