Nykaa IPO subscribed 1.73 times on Day 2 so far on retail thrust

New Delhi: The initial public offering (IPO) of FSN e-commerce Ventures, which operates the fashion omnichannel , has received a decent response from investors.

As per the data provided from National Stock Exchange (NSE), investors made bids for 4,58,43,360 equity shares against the total issue size of 2,64,85,479 equity shares so far on Day 2 of the bidding process. This translates into an oversubscription of 1.73 times. The issue had opened for bidding on Thursday.

Thanks to the strong interest from retail participants, the Rs 5,352-crore issue managed to sail on day one itself. The issue can be subscribed till Monday, November 1.

So far, the quote for retail investors has received 2.61 times bids, whereas QIB's quote was subscribed 41 per cent. HNI investor portion was subscribed 32 per cent, the data available with NSE suggested.

The majority of brokerages are positive on the IPO and have given it a subscribe rating. However, Marwadi Shares and Finance has given a 'subscribe with caution' rating to this IPO.

Considering the TTM as of June 2021, adjusted EPS of Rs 2.54 on a post-issue basis, the company is going to list at a P/E of 443.46 with a market cap of Rs 53,204 crore, it said.

The beauty-products omnichannel would raise Rs 630 crore via the sale of fresh equity shares, whereas promoters and existing shareholders will offload 43.11 million shares worth Rs 4,723 crore.

Nykaa was founded in 2012 by Falguni Nayar, a former investment banker with Kotak Mahindra Bank. The start-up is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers.