Falguni Nayar-promoted and private equity firm TPG-backed FSN E-Commerce Ventures’ maiden public offer was oversubscribed by 4.82 times on October 29, the second day of bidding. The offer closes on Monday.
Investors have put in bids for 12.77 crore equity shares against an offer size of 2.64 crore equity shares, the subscription data showed.
Retail investors subscribed for 6.32 times the portion reserved for them and employees have put in bids 1.18 times the portion set aside for them.
Qualified institutional investors have bought shares 4.72 times their reserved portion, and a part earmarked for non-institutional investors was subscribed 4.17 times.
The Nykaa and Nykaa Fashion operator intends to garner Rs 5,351.92 crore through the public issue, of which it mobilised Rs 2,396 crore from anchor investors on October 27. The offer comprises a fresh issue of Rs 630 crore and an offer for sale of Rs 4,721.92 crore worth of shares by the promoter and investors.
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The net proceeds from the fresh issue are going to be utilised for expansion and debt reduction, besides general corporate purposes. The price band for the offer has been fixed at Rs 1,085-1,125 per equity share.
"With a diverse assortment of beauty, personal care and fashion products, Nykaa’s supremacy lies in its ability to retain and attract customers. Nykaa has witnessed sustained growth in GMV (gross merchandise value) over the years and has the highest AOV (average order value),” said Yesha Shah, Head of Equity Research at Samco Securities.
Its robust technology and content engine, focus on capital efficiency and positive unit economics, coupled with immense headroom for penetration, provide the company a long runway for growth. "The dearth of PAT-positive new-age companies in India and its first-mover advantage augur well for Nykaa to command a higher premium,” Yesha said.
“We believe the company is capable of improving its financial metrics and cementing its position going forward and hence recommend investors to Subscribe to the issue.”
Nykaa is a digitally native consumer technology platform, delivering a content-led lifestyle retail experience to consumers. The Nykaa vertical operates in beauty and personal care segment and the Nykaa Fashion vertical sells apparels and accessories.
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