Nykaa IPO: Retail Investors’ Portion Fully Subscribe In The First Hour

Nykaa’s IPO seems to have started on a positive note. Within an hour of opening, the retail portion of Nykaa’s IPO got fully subscribed, BSE data showed. 

As of 11 a.m. (28th Oct), individual retail investors have bid for 51,07,128 shares, against 47,53,187 shares allocated for them, thereby subscribing 107% of the retail portion, according to the BSE website. 

The overall subscription stood at 23%, with 60,11,808 shares being bid out of the total allocation of 2,64,85,479 shares.

• Qualified institutional buyers have so far subscribed 5% of the portion of shares allocated to them. QIBs (the foreign investors of Nykaa’s IPO) have bid for 6,66,000 shares out of the earmarked 1,43,52,511 shares.
• The portion for non-institutional investors, including corporates and individuals (other than retail investors) have bid for 2,17,476 (3%) out of the allocated 71,29,781 shares.
• Further, the portion reserved for employees has been subscribed by 8%. As of 11 a.m., employees had bid for 20,964 shares of the allocated 2,50,000 shares.

On Wednesday, FSN E-Commerce raised over INR 2,395.84 Cr by allocating nearly 2.13 Cr shares to 174 anchor investors

The investors subscribed to the shares at a value of INR 1,125 per share, an upper limit of the IPO price band (INR 1,085 – INR 1,125).

In a regulatory filing, FSN E-Commerce said, “Under Anchor Investors (AIs) portion in the public issue of FSN E–Commerce Ventures Limited, 21,296,397 equity shares have been subscribed today at Rs 1,125 per equity share.”

The anchor investors included — Blackrock, Fidelity International, the Government of Singapore and the Monetary Authority of Singapore. 

Out of the total allocation to the Anchor Investors, 7,098,801 equity shares, 33.33% of the total allocation to anchor investors were allocated to 21 domestic mutual funds through a total of 93 schemes.

The IPO which opened earlier today (28th Oct), will close on November 1. As per the startup’s red herring prospectus (RHP), its IPO includes a fresh issue of INR 630 Cr and an offer for sale (OFS) of up to 41,972,660 shares.

The beauty and lifestyle unicorn’s offer initially included a fresh issue of shares up to worth INR 525 Cr and an offer-for-sale of equity shares up to 43,111,670 equity shares. However, the company later raised its fresh issue size to INR 630 Cr.

At the estimated price band, the company will raise funds in the range of INR 4,554.03 Cr – INR 5,351.92 Cr.

Under the OFS, Sanjay Nayar Family Trust, the company’s promoter is offering up to 4.8 Mn shares. Nykaa’s investors — TPG Growth IV SF Pte Ltd and Lighthouse India Fund III would sell up to 5,421,510, and 4,844,620 shares, respectively.

Falguni Nayar, the founder of the ecommerce unicorn, along with her husband Sanjay Nayar, their children Anchit Nayar and Adwaita Nayar hold 53.5% share in the company, as per the DRHP. 

Founded by former investment banker Nayar in 2012, Nykaa has emerged as a go-to-ecommerce platform for beauty and fashion products. The company competes against heavily invested funded giants such as Amazon, Myntra, and Flipkart.