The Rs 5,352-crore IPO of Fashion E-Commerce Ventures, which runs Nykaa, is listed at a huge premium of over 79 per cent. The Nykaa shares listed at Rs. 2,001 on Wednesday, against the issue price of Rs 1,125 on Wednesday.
After jumping to a 77.86% premium on listing the shares then zoomed 89.24 per cent to Rs 2,129 on the BSE. On NSE, it is listed at Rs 2,018, giving a premium of 79.37 per cent. The initial share-sale of Nykaa was subscribed 81.78 times earlier this month. The company’s market valuation crossed Rs. 1 lakh crore putting it among the elite list of top companies in the Indian market.
With the strong market debut, Falguni Nayar, a former investment banker, who founded Nykaa in 2012, is now worth about $6.5 billion. FSN E-Commerce Ventures, Nykaa’s parent entity, is India’s first woman-led unicorn to hit the stock exchange. Nayar who owns about half of Nykaa shares benefitted the most as the shares of the firm surged as much as 89% when they started trading.
Nayar owns her company stake through two family trusts and seven other promoter entities. Her Ivy League-educated daughter and son, who run different Nykaa units, are among the promoters. The company has a diverse portfolio of beauty, personnel care and fashion products. These also include its own manufactured brand products, which started in 2015, under its two business verticals — Nykaa and Nykaa Fashion.
It has a growing high street presence with 80 stores across 40 Indian cities. Nykaa quickly became popular with young Indians – predominantly women, who preferred the wide selection of brands compared with what was on offer at their local shops.
