Beauty products retailer Nykaa's three-day IPO got off to a strong start, with the portion meant for retail investors getting fully subscribed within the opening hour. The IPO was subscribed 1.5 times at the end of the first day.
The initial public offering by the company, formally known as FSN E-Commerce Ventures Ltd., comprises a fresh issue worth Rs 630 crore and an offer-for-sale by promoters and existing investors to offload 4.19 crore shares worth around Rs 4,721 crore, according to its red herring prospectus.
The firm has set a price band of Rs 1,085-1,125 apiece, giving it a market value of up to Rs 53,204 crore, or about $7.1 billion.
Net proceeds from the initial share sale will be used towards investment in subsidiaries for starting new retail stores and capital expenditure towards new warehouses. The most significant chunk will go towards acquiring and retaining customers and repayment or prepayment of borrowings.
Subscription Details: Day 1
The IPO was subscribed 1.55 times as of 5 p.m. on Oct. 28.
Institutional investors: 1.39 times.
Non-institutional investors: 0.60 times.
Retail investors: 3.50 times.
Employees: 0.68 times.
Watch BloombergQuint's IPO Adda With Nykaa CEO Falguni Nayar:
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