Nykaa IPO was subscribed 1.55 times on the first day of issueE-commerce beauty giant Nykaa's Rs 5,352 crore initial public offering (IPO) was subscribed 1.55 times on the first day of issue,according to subscription data on the stock exchanges.
The beauty e-tailer's IPO opened for bidding today and will close for subscription on November 1.On Thursday,retail individualinvestors (RII)showed hugeinterest as the portion reserved for them was subscribed 3.50times-the highest among the three groups of investors.The portion set aside for the qualified institutional buyers or QIB was subscribed 1.39times,while the portion reserved for the non-institutionalindividual investorswas subscribed 0.60times.The companyhas fixed a price band of1,085-1,125 per share for the public offer.
Bids can be made for a minimum of 12 equity shares and in multiples of 12 equity shares thereafter up to 14 lots.Founded by banker-turned-businesswoman Falguni Nayar, Nykaa was incorporated in 2012 and is the country's first woman-led unicorn.
FSN E-Commerce Ventures - operates the beauty and personal care segment through Nykaaand apparel and accessories vertical through Nykaa Fashion."Nykaa has reported a strong 48 per centCAGR growth in its topline from FY19 to FY21.
During the same period, the company's bottomline has also increased from a loss of 32 crore in FY19 to a profit of Rs 62 crore in FY21.
The company has turned in a profit in FY21 as compared to losses in the previous years.
It is currently one of the few profitable e-tailer in India.At the higher end of the price band, Nykaa IPO is expensively priced at a PE ratio of 840 times FY21 earnings per share (on a post-issue basis).
The valuation appears to be high, given that the company turned in a marginal profit in FY21.
On a price-to-sales basis, Nykaa is priced at 21.5 times FY21 earnings per share.
There are no immediate listed peers for the company, and hence, it could enjoy a scarcity premium in India,''SEBI-registered investment advisor INDmoney said.