Time, quote price, Nykaa share price, details

On Wednesday, all eyes are on Nykaa, India’s largest online market for beauty and personal care products. The operator of Nykaa FSN E-Commerce Ventures will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on November 10 at 10 a.m. subscription. Nykaa IPO was subscribed 81.78 times out of the 2.64 crore of shares offered. Investors made offers of more than 216.59 crore of shares against the total issue size of more than 2.64 crore of shares, according to the data. The strong investor response, the inventory-based business model, the extensive online presence as well as 80 physical stores in 40 cities in India and the high premium in the unofficial market prior to listing indicate a health rating for Nykaa IPO on the stock market in November. 10, according to experts.

Nykaa’s IPO was open for subscription from October 28 to November 1 and set a price range of Rs 1,085 to Rs 1,125 apiece for the inaugural offering. Nykaa’s IPO includes a new issue valued at Rs 630 crore and an offer to sell a maximum of 4 18 72 660 shares valued at Rs 4 721.92 crore. The company will use the net proceeds of the new issue to invest in two subsidiaries and to establish new retail stores. The company will also use the money for the repayment or early repayment of outstanding loans taken out by the company and one of their subsidiaries, namely Nykaa E-Retail, according to the draft document.

Nykaa’s IPO received an overwhelming response from investors in the bidding process, thanks to a unique business model and a founders-led management team and a healthy market share in the beauty and personal care segment. The portion reserved for qualified institutional buyers (QIB) was subscribed 91.18 times. The quota allocated to institutional investors was subscribed 112.02 times and that of individual investors was subscribed 12.24 times.

Nykaa IPO Marché Gris Premium

Nykaa’s unlisted stocks have earned a healthy premium on the gray market in recent days. Nykaa’s shares were trading at a price of Rs 2,575 on the gray market on November 9. Prior to listing, Nykaa’s IPO gray market premium was Rs 750, or 67% of the final IPO price of Rs 1,125 per share, according to these agreements. with unlisted market.

Nykaa IPO Listing on BSE, NSE November 10

During Nykaa’s listing on ESB and NSE on November 10, Abhay Doshi, founder of UnlistedArena.com, which deals with pre-IPO and unlisted stocks, said: As the primary market is attracted to the Startup IPO frenzy, Nykaa, which is the only profitable startup company among current startup IPOs, has managed to get an astonishing response from investors. I expect Nykaa to be listed anywhere above Rs 1,700 which implies gains of over 50% on the listing. “

Regarding Nykaa’s valuation, Reliance Securities said in a note: “The IPO is valued at 21.8 times the EV FY21 over sales, which is a 20% discount from the other two. recently listed unicorns, CarTrade and Zomato, despite higher RoE. In our opinion, the beauty and personal care market offers a great addressable market opportunity, especially in India where millennials tend to prefer buying brands and looking for easy buying options such as trade. electronic. Being in a unique business model and a first-mover advantage, NYKAA is likely to get good traction and therefore high profit valuation would not be the right yardstick to judge the stock. “

For investors, he said, “However, progress in future earnings growth and cash flow generation would be key things to watch. Additionally, given the company’s lightweight business model and the sustained traction of GMVs, we believe the return ratio profile is likely to strengthen in the future. Therefore, we recommend that you sign up for a long term perspective. “

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About Thomas Hereford

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