TPG-backed vogue e-commerce platform Nykaa’s preliminary public providing drew bids value $32.55 billion because it was oversubscribed by practically 82 occasions on Monday, signalling robust investor demand for the most recent startup within the nation to pursue a home inventory itemizing.
FSN E-Commerce Ventures, the corporate which owns the Nykaa model, priced the 53.52 billion rupee IPO at a variety of 1,085 rupees to 1,125 rupees per share, giving it a valuation of as a lot as $7.11 billion.
The corporate acquired bids for 40 occasions the variety of shares it plans to promote to anchor buyers in its IPO, a supply instructed Reuters final week. Traders included Blackrock Capital Group and asset supervisor Constancy.
Nykaa’s IPO is the most recent in a yr which has seen over 40 corporations checklist on the home inventory exchanges, the best quantity since a minimum of 2016, as corporations try to money in on a market that has scaled file highs on the again of a decline in COVID-19 circumstances, a re-opening of the financial system and ample liquidity.
“Nykaa is uniquely positioned… (with) a market share of virtually 35% within the on-line magnificence and private care market,” mentioned Sneha Poddar, affiliate vice chairman of analysis, broking & distribution at Motilal Oswal Monetary Companies Ltd, including it’s effectively positioned to focus on enormous development potential.
India’s magnificence and private care market is estimated to develop to about $28 billion by 2025, in accordance with analysis agency RedSeer.
Launched in 2012, Nykaa grew fashionable by promoting cosmetics and grooming merchandise on its web site, apps and thru its bodily shops, earlier than increasing into vogue, pet care and family provides. Its buyers embrace movie actresses Alia Bhatt and Katrina Kaif.
In contrast to most startups, Nykaa has additionally achieved profitability, posting a consolidated internet revenue of 618.5 million rupees for the yr ended March 31, 2021.