Image Source : FREEPIK/NYKAA (EDITED) Nykaa shares are commanding a strong GMP of 68 per cent ahead of the listing
Nykaa IPO GMP, Nykaa Share Price NSE: Nykaa IPO is scheduled to make its stock market debut on Wednesday. The Rs 5,351 crore IPO of FSN E-Commerce Ventures Ltd, Nykaa’s parent company, was subscribed over 82 times.
The company had received bids for 2,16,59,47,080 shares against 2,64,85,479 shares that were on offer. The category meant for qualified institutional buyers (QIBs) was subscribed 91.18 times, non-institutional investors 112.02 times and retail individual investors (RIIs) 12.24 times.
The IPO of FSN E-Commerce Ventures had a fresh issue of equity shares worth Rs 630 crore and an offer for sale (OFS) of 4,19,72,660 equity shares by the promoter and existing shareholders. The price range for the offer was Rs 1,085-1,125 per share. FSN E-Commerce Ventures Ltd had raised Rs 2,396 crore from anchor investors ahead of the IPO.
Nykaa Grey Market Premium
In the grey market, the unlisted shares of Nykaa are quoting a strong premium of Rs 780 which is 68 per cent over the issue price of Rs 1,125 per share.
According to the draft papers, the company plans to use the proceeds from the IPO for expansion, by setting up new retail stores and establishing new warehouses. It also plans to retire some of its debt, which should bring down interest costs and further shore up its profitability.
In addition, the company is planning to deploy the proceeds of the IPO for marketing and promotional activities, to focus on strengthening its 13 owned brands such as Nykaa Cosmetics, Nykaa Naturals and Kay Beauty along with establishing and promoting new brands.
The company has a diverse portfolio of beauty, personnel care and fashion products, including its owned manufactured brand products under its two business verticals — Nykaa and Nykaa Fashion.
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