Nykaa Investors Witness Nearly 100% Returns On Beauty Giants’ Stock Market Debut

SUMMARY

The net worth of Nykaa CEO Falguni Nayar shot up to $6.5 Bn

Nykaa’s market capitalisation stood at INR 1.04 Cr.

Its IPO was subscribed 81.78 times during October 28 - November 1.

As the shares of FSN E-Commerce marked a stellar lising on the stock market today, its investors have witnessed a 96% return on their investments.

On the BSE, shares of FSN E-Commerce, parent of Nykaa, closed at INR 2,206.70 per share, INR 1,081 or 96.15% higher than the issue price of INR 1,125. The closing level was 28% higher than the listing price of INR 2,001.

Similarly, on the National Stock Exchange (NSE), its shares closed 96.26% higher than the listing price at INR 2,018 apiece.

According to the Bloomberg Billionaires Index, post the bumper listing, the net worth of Nykaa CEO Falguni Nayar shot up to $6.5 Bn.

The promoters hold around 50% of the stake in the company.

The Sanjay Nayar Family Trust and Falguni Nayar Family Trust hold 23.37% and 22.04%, respectively. Further, the Adwaita Nayar-Sanjay Nayar Family Trust and Anchit Nayar-Sanjay Nayar Family Trust hold 1% stake each.

Falguni, the CEO is a trustee in all of these trusts, showed the red herring prospectus. Sanjay Nayar Family Trust has sold over 4% of its stake in the IPO.

Post the stock market surge, Nykaa’s market capitalisation stood at INR 1.04 Cr.

The bumper listing was largely on expected lines after the initial public offering from October 28 – November 1, was subscribed 81.78 times.

At the upper limit of the IPO price band of INR 1,085 – INR 1,125, the offer attracted bids of nearly $32.53 Bn.

QIBs subscribed to the earmarked portion of shares by a massive 91.18 times, and the retail portion was subscribed 12 times.

Before the IPO, the beauty and lifestyle unicorn raised over INR 2,395.84 Cr by allocating nearly 2.13 Cr shares to 174 anchor investors, including Blackrock, Fidelity International, the Government of Singapore and the Monetary Authority of Singapore.

The over INR 5,000 Cr IPO included a fresh issue of INR 630 Cr and an offer for sale (OFS) of up to 41,972,660 shares.

Nykaa’s market share in the online beauty and personal care space is estimated to be more than 18.5% (calculated as revenue of FY20/TAM). Overall, India’s online beauty and personal care market is estimated to reach $5.4 Bn by 2025. Purplle, SUGAR Cosmetics, Pureplay, Mamaearth and MyGlamm are a few other players in this market. MyGlamm entered the unicorn club yesterday.