BENGALURU, Nov 1 (Reuters) – TPG-backed Indian fashion e-commerce platform Nykaa’s initial public offering drew bids worth $32.55 billion as it was oversubscribed by nearly 82 times on Monday, signalling strong investor demand for the latest startup in the country to pursue a domestic stock listing.
FSN E-Commerce Ventures, the company which owns the Nykaa brand, priced the 53.52 billion rupee IPO at a range of 1,085 rupees to 1,125 rupees per share, giving it a valuation of as much as $7.11 billion. read more
The company received bids for 40 times the number of shares it plans to sell to anchor investors in its IPO, a source told Reuters last week. Investors included Blackrock Capital Group and asset manager Fidelity. read more
Nykaa’s IPO is the latest in a year which has seen over 40 companies list on the domestic stock exchanges, the highest amount since at least 2016, as firms attempt to cash in on a market that has scaled record highs on the back of a decline in COVID-19 cases, a re-opening of the economy and ample liquidity.
“Nykaa is uniquely positioned… (with) a market share of almost 35% in the online beauty and personal care market,” said Sneha Poddar, associate vice president of research, broking & distribution at Motilal Oswal Financial Services Ltd, adding it is well placed to target huge growth potential.
India’s beauty and personal care market is estimated to grow to about $28 billion by 2025, according to …….