Nykaa raises nearly ₹2,400 crore in anchor investment from Government of Singapore, Goldman Sachs, JP Morgan and others

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Nykaa raises nearly ₹2,400 crore in anchor investment from Government of Singapore, Goldman Sachs, JP Morgan and others
Nykaa's CEO Falguni NayarBCCL
  • Nykaa has allocated equity shares at the upper price band of ₹1125 per share.
  • Fidelity Investment Fund, JP Morgan Investment Trust and others have participated in the round.
  • Nykaa’s IPO will close on November 1 and the company will likely list on the stock exchange on November 11.
Fashion and beauty ecommerce platform Nykaa has raised ₹2,395.8 crore from 174 anchor investors, including Government of Singapore, Goldman Sachs, JP Morgan and others.

The Mumbai-based company — whose initial public offering (IPO) opens for bidding today, with a price band of ₹1,085 to ₹1,125 — has allocated 21,296,397 shares at the upper price band of ₹ 1125 per equity share.

Fidelity Investment Fund, JP Morgan Investment Trust, T Rowe Price, OP-India Fund, Mirae Asset, Abu Dhabi Investment Authority (ADIA), Steadview and others also participated in the round.

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Nearly 71 lakh shares were allocated to 21 domestic mutual funds through 93 schemes, Nykaa’s filing with the stock exchanges has revealed.

Nykaa’s IPO will close on November 1 and the company will list on the stock exchange on November 11. The company intends to raise ₹5,352 crore with this public issue.

Nearly ₹630 crore will be raised through fresh issue of shares. According to Nykaa’s red herring prospectus, 17 investors — both institutional and individuals — would sell 4.3 crore equity shares as part of this IPO.

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Looking at the profitability of Nykaa and the ongoing market trends, several stock brokerages have recommended users to subscribe to this IPO.

Nykaa has been EBITDA (earnings before interest, taxes, depreciation, and amortisation) positive since the financial year 2019. The indicated that the company was profitable at an operational level, even if it was reporting a loss after tax.

It reported a profit after tax in the financial year 2021.

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Hem Securities noted that Nykaa’s financial statement for the last three years highlights that the company is “focused” on capital efficiency and unit economics, while simultaneously building for scale and growth.

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These stock brokerages and analysts have highlighted that Nykaa will benefit from several factors, including their planned expansion into the Middle East and European market, tailwind in the beauty and fashion ecommerce industry, strong relationships with global brands and its own diverse set of brands and more.

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