Nykaa starts trading at ₹2,001, a premium of 77.87%

• The price band for Nykaa’s IPO was set at ₹1,085-₹1,125.
• The company’s market cap also breached the ₹100,000 crore mark within a few hours of its stock exchange debut
• It will use the proceeds from the public issue to acquire new businesses and boost its operations.

Nykaa made a strong debut on the stock exchanges on Wednesday, November 10, as its shares opened at ₹2,001 on the BSE. This is a premium of 77.87%.

The shares were trading at ₹2,203 at 12:39 p.m., on November 10, representing a premium of nearly 96% over the issue price of ₹1,125.

The company’s market cap also breached the ₹100,000 crore mark within a few hours of its stock exchange debut.

Nykaa — which is a brand of the parent company FSN E-Commerce Venture Limited — was supposed to make its stock exchange debut on November 11, but the listing date was postponed by a day.

The company had launched its initial public offering (IPO) on October 28 and it closed on November 1. The allotment status of the IPO was announced on Monday, November 8.

The company has raised ₹5,352 crore with this public issue. Nearly ₹630 crore will be raised through fresh issue of shares.

The price band was set at ₹1,085 to ₹1,125, and the lot size was 12 shares. At a price of ₹1,125, one lot cost up to ₹13,500.

Nykaa’s issue was subscribed over 82 times at the end of the bidding process on November 1. The IPO received bids for 216 crore shares against 2.64 crore shares that were offered.

A day before its IPO, on October 27, Nykaa raised ₹2,395.8 crore from 174 anchor investors. The Government of Singapore, Goldman Sachs, JP Morgan, Fidelity Investment Fund, JP Morgan Investment Trust, T Rowe Price and others participated in the round.

Nykaa intends to use this capital for acquisition of customers as well as new businesses. The beauty and fashion ecommerce brand also plans to increase its international presence by foraying into the Middle East as well as the United Kingdom.

The company will also use the capital to set up more retail stores and warehouses to promote its ecommerce business.

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