At the end of the final day of bidding, FSN E-Commerce Ventures Ltd’s initial public offering (IPO), which operates the online marketplace for beauty and wellness products Nykaa, had been subscribed to more than 82 times.
Nykaa raised Rs. 2,396 crore from anchor investors ahead of its IPO. On the first day of sales, the issue was subscribed 100 percent. According to BSE and NSE cumulative bid figures as of 5:00 p.m. yesterday, it received 2.16 billion bids for the 21.2 million shares on offer, excluding the anchor segment.
The portion reserved for institutional investors was subscribed to 92 times, the section reserved for wealthy investors was subscribed 112.5 times, the portion reserved for retail investors was 12.3 times, and the portion reserved for employees was 1.8 times.
According to market analysts, Nykaa shares are available at a premium (GMP), which has declined from the previous day but remains robust in the grey market today at over Rs. 570. On November 11, the company’s shares are likely to be listed on the major stock exchanges NSE and BSE.
This is the second-largest IPO after food-delivery startup Zomato’s, which was the first by an Indian unicorn. Zomato attracted Rs. 2 trillion in bids and was oversubscribed 38 times. The subscription for PolicyBazaar’s IPO has opened yesterday while the much-anticipated Paytm IPO will commence on November 8 with an aim to raise Rs 18,300 crore.
The company issued shares worth Rs 2,396 crore to a consortium of large foreign and domestic funds last week. The anchor investors made bids totaling more than Rs 95,000 crore, and demand was 40 times higher than the number of shares on offer. The BlackRock, Canada Pension Plan Investment Board, and Fidelity were among the anchor investors.
FSN E-Commerce Ventures had proposed a price band of Rs 1,085-1,125 per share for its IPO, which included a Rs 630 crore fresh issue and a Rs 4,722 crore offer for sale (OFS). At the upper end of the price band, the IPO will value the company at Rs 53,200 crore (~$7 billion). The proceeds of the fresh offering will be used to strengthen the brand visibility and awareness, repay debt, and set up retail stores and warehouses.
Nykaa has appointed global coordinators and book running lead managers which include Bofa Securities India, Citigroup Global Markets India, ICICI Securities, Kotak Mahindra Capital Company, JM Financial, and Morgan Stanley India Company to manage the public issue.
FSN E-Commerce Ventures is a digital consumer fashion technology platform that focuses on content-driven retail lifestyle experiences. Its product offering comprises fashion, cosmetics, and personal care products. It serves customers through both physical and online stores. The company operates over 80 outlets spanning 40 cities across the country.