Nykaa shares are going to make their Dalal Street debut on Wednesday, November 10. The company was earlier scheduled to be listed on Thursday. The counter is commanding a strong premium in the gray market, indicating blockbuster listings of new-age startups.
FSN E-commerce Ventures shares are available at a hefty premium of Rs 760-780, which is almost 70 per cent higher than the price range of Rs 1,085-1,125 per share.
Unlisted Arena co-founder Abhay Doshi said investors who get allotments are likely to benefit from a strong listing pop. It is an ideal startup to invest in and deserves an expensive appraisal. “Nykaa boasts efficient and quality management, strong cash flow and strong prospects for future growth,” said the avid gray market tracker. “However, this is not a buy-and-forget story. Investors should review this from time to time.”
The Nykaa IPO is open for subscription from October 28 to November 1, 2021. The company raised Rs 5,352 crore from its primary stake sale.
Ayush Agarwal, Senior Research Analyst-Merchant Banking, Swastik Investmart said Nykaa would be listed in the range of Rs 1,600-1,700, considering the current gray market premium. “Given the recently listed new age business and Nykaa’s growth plan, we expect the company to outperform,” he added. “We recommend investors to stay invested in IPOs as it can be a wealth maker in the next 2-3 years.”
The popular e-commerce platform in India received bids for 216.59 crore shares against an issue size of 26.4 million shares, according to data available with the National Stock Exchange (NSE). The issue was subscribed 82 times, the bidders’ share for eligible institutions was oversubscribed 91 times, while bids from non-institutional buyers were received over 112 times the quota. The share of retail bidders was oversubscribed 12.24 times.
Harshad Chetanwala, co-founder, MyWealthGrowth.com, said companies like Nykaa have come up with unique propositions and raised funds to grow their business. Explaining his choice, Chetanwala said, “Investors should evaluate any new aspect of the company – such as business prospects and strengths, promoters’ plans after listing, capital utilization and valuation of the company – to take any decision.” before.” to play for a long time.
Nykaa is India’s largest online marketplace for beauty, personal care and fashion brands. The company placed 17.1 million orders in FY 2011 and operates 80 offline stores in 40 cities across India.
Ankur Saraswat, Research Analyst, Trustline Securities, said the company has an all-encompassing approach to drive brand contribution and will further enhance this proposition with the fresh funding. “Nayaka will look to achieve overall profitability this year as consumers move to digital interactions, thereby growing its business,” he added.