Glamorous debut: Nykaa lists at Rs 2,018 apiece; a premium of 79.38%

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Shares of FSN E-Commerce Ventures, the operator of Nykaa and Nykaa Fashion chain added some glamor to its shareholder’s portfolio in an otherwise dull day on the street as the stock opened for trading at Rs 2,018 on the National Stock Exchange, compared to the issue price of Rs 1,125, implying a premium of 79.38%. On the BSE, it got listed at Rs 2,001, at a premium of 77.87%.

The Rs 5,351.92-crore public offer garnered a massive response from investors as it got oversubscribed 81.78 times. It received bids for 2,16,59,47,080 shares as against 2,64,85,479 shares on offer on Monday, according to stock exchange data. The retail individual investors category was subscribed 12.24 times. The non-institutional investors category was subscribed 112.02 times. The qualified institutional buyer’s category was subscribed 91.18 times.

The issue comprised of fresh issuance of equity shares of Rs 630 crore, and an OFS (offer for sale) of Rs 4,721.92 crore by existing selling shareholders TPG, Light House India Fund, JM Financial, Yogesh Agencies, Sunil Kant Munjal, Harindarpal Singh Banga, Narotam Sekhsaria and Mala Gaonkar. Promoter Sanjay Nayar Family Trust will sell 4.8 million shares.

While the net proceeds from the fresh issue will be utilized towards setting up of new retail stores, warehouses, repayment or prepayment, of outstanding borrowings, creating brand awareness and for general corporate purposes.

FSN E-Commerce Ventures is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers. The company has a diverse portfolio of beauty, personal care and fashion products, including their owned brand products manufactured by it.

The company’s beauty and personal care offering is extensive with 2,56,149 SKUs (stock keeping unit) from 2,644 brands primarily across make-up, skincare, haircare, bath and body, fragrance, grooming appliances, personal care, and health and wellness categories as of 31 August 2021.

The company reported a consolidated net profit of Rs 3.52 crore and revenue from operations of Rs 816.99 crore as at 30 June 2021.