Nykaa IPO Subscribed 2 Times With Robust Investor Interest

SUMMARY

Retail investors have subscribed 4.86 times the portion allocated to them

Qualified Institutional Buyers have bid for 2,45,76,240 shares, while the allocated shares amount to 1,43,52,511

The company had raised over INR 2,395.84 Cr by allocating nearly 2.13 Cr shares to 174 anchor investors

Backed by strong demand from retail investors and qualified institutional buyers (QIB), the initial public offering (IPO) of FSN E-Commerce, the parent company of Nykaa, has been subscribed over two times so far.

As of 1.03 p.m. (29th October), its shares on offer have been subscribed 2.12 times. Investors have placed their bids for 5,62,31,232 shares against a total of 2,64,85,479 on offer.

Retail investors have subscribed 4.86 times the portion allocated to them, as they bid for 2,31,19,008 shares, against the earmarked 47,53,187 shares.

Qualified Institutional Buyers (QIBs) have bid for 2,45,76,240 shares, while the allocated shares amount to 1,43,52,511, thereby subscribing 1.71 times of the earmarked portion.

Non-Institutional Investors also have fully subscribed the shares allocated to them. So far, they have subscribed to the shares 1.17 times, with bids placed for 83,17,956 shares, against a total of 71,29,781 shares on offer.

However, the section reserved for the employees is yet to be fully subscribed and bids have been received for 2,18,028 shares, out of the 2,50,000 shares put aside for them, thereby subscribing 0.87 times to the offer.

So far, the IPO of the online lifestyle marketplace has drawn good response from the investors across categories. It was already oversubscribed on Thursday, the first day of its offer.

At the end of the first day of the offer, the IPO was subscribed 1.55 times.

The company had raised over INR 2,395.84 Cr by allocating nearly 2.13 Cr shares to 174 anchor investors.

The anchor 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.

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. Overall, the company will raise funds in the range of INR 4,554.03 Cr – INR 5,351.92 Cr.