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Nykaa IPO day 2: Experts give a thumbs up to the public issue

From a strong brand image to loyal customer base to healthy financials, the reasons vary. Most brokerages say the issue holds good scope for listing gains as well as long-term growth. However, some analysts do say the issue comes at a premium valuation.

October 29, 2021 / 10:29 AM IST
  • bselive
  • nselive
Todays L/H

FSN E-Commerce Ventures, which runs the beauty and personal care (BPC) brand Nykaa, has received a thumbs up from analysts, who advise investors to subscribe to the issue. The company opened its Rs 5,351.92 crore initial public offering (IPO) on October 28.

Why are analysts so optimistic about the IPO? The company's strong brand image, and the management team led by banker-turned-businesswoman Falguni Nayar are the two chief reasons.

Then, there are factors like the loyal customer base, healthy financials, leadership position in the specialty BPC segment, capital-efficient business model and huge growth potential. However, they agree that the issue comes at a premium valuation.

Nykaa is the BPC brand and Nykaa Fashion sells apparels and accessories.