The owners of Nykaa, FSN E-Commerce Ventures Ltd, received an excellent response from theirs ₹Initial public offering of 5300 crore, which closed on Monday.
The three-day issue attracted subscriptions that were 82.42 times the issue volume – excluding the anchor allotment.
On Monday, 5.30 p.m., Nykaa received -plications for around 2.17 billion shares with an issue volume of 26.28 million shares without an anchor allotment, as stock market data showed.
At the top of the ₹1085-1125 Price range for the issue, the IPO has drawn bids worth -proximately ₹2.43 trillion. The institutional investor category received bids on 1.31 billion shares and the book was drawn 92.17 times, data showed.
The non-institutional category of high net worth individuals was subscribed to 112.51 times. Demand from private investors whose investments are no more than ₹2 lakh ini an IPO, stood at 12.29 times.
Despite weakness and volatility in the secondary markets, the commercial bankers were delighted with the reaction to the IPO. -art from that, the high gray market premium – which indicates strong quotation gains – also attracted large numbers of investors.
In the Mumbai gray market, Nykaa shares traded at a premium of ₹560-570 a share on Monday, two traders said under conditions of anonymity.
The company received almost 40 bids last Wednesday by selling shares to anchor investors. All in all ₹The anchor category had stocks valued at 2,396 billion and a number of large overseas and domestic funds had bids valued at over. submitted ₹95,000 million euros.
“Nykaa will likely trade at a huge scarcity premium over global competitors in the online BPC space (trading 3x GJ24E EV / sales average). We believe Nykaa will trade at a one-year forward EV / sales of ~ 6 -8x could be traded purely based on its BPC core offering. However, the issue price is already 10.2x FY24 EV / Sales, taking into account a premium multiplier, supported by growth in the fashion business, “said Elara C -ital in a statement to its investors .
“However, successful implementation in the fashion segment is the key to re-evaluating the valuation in the medium to long term. The expansion in the fashion sector can affect profitability due to high investments in discounts and marketing prevail over time through Nykaa’s multi-platform -proach (successful execution in Nykaa Man and Nykaa Fashion) which is currently a niche platform, “added Elara’s report.
Meanwhile, Fino Payments Bank’s IPO remained lukewarm on day two, with the lender only receiving 0.81 times the bids. Small investors -plied 434% while large net investors used only 4%. Qualified institutional buyers have yet to place orders for the issue.
Two new IPOs – SJS Enterprises Ltd and PB Fintech Ltd – opened for subscription on Monday. PB Fintech Ltd, which is planning an increase ₹5700 crore received an overall response of 58%. Institutional investors and high net worth investors subscribed 62% and 7% respectively. Private investors subscribed in full on the first day and received 1.23 bids.
SJS Enterprises subscribed 32% on the first day of the IPO. Retail investors received 64%, while wealthy investors subscribed only 1%. The QIB part still has to place orders for the issue.
The Sigachi Industries IPO received 9.52 times the subscription on the first day. The retail share subscribed 16.81 times, while the share of wealthy investors subscribed 4.46 times. Institutional investors subscribed 57%.
Subscribe to something Mint newsletter
* Please enter a valid email
* Thank you for subscribing to our newsletter.
Never miss a story again! Stay connected and informed with Mint. Download our -p now !!