The Indian beauty and wellness platform: Nykaa has been the talk of the town recently. The portal offers products ranging from skincare, haircare, makeup, styling devices, etc.
It allows international businesses like Huda beauty and Charlotte Tillbury to expand their base to India while nurturing partnerships with Indian collaborators and beauty brands, including celebrities like Katrina Kaif’s Kay beauty and more.
Nykaa has also been one of the most genuine beauty product sellers as promoted by various fashion and beauty bloggers who brought in more fame and name.
Top Influencers like Aashna Shroff, Malvika Sitlani, Juhi Godambe, etc., have been engaging their audience by recommending ordering products from Nykaa and claiming the authenticity of the items.
The venture also operates its self-care and fashion apparel, accessories, and footwear portal named Nykaa Fashion.
These verticals consist of 1,350 brands and over 1.8 million SKUs with fashion products across four consumer divisions: women, men, kids, and home. Nykaa Fashion also has six owned brands.
The company also provides an Omni-channel shopping experience to the users and customers by selling products online through the Nykaa fashion and Nykaa beauty app. In contrast, it has also opened 73 retail physical stores in over 38 cities.
This massive popularity among the masses has brought Nykaa up as a high-demand beauty e-tailer. Therefore coming in with a bang, Nykaa is all set to make its stock market debut on the BSE and NSE today on November 10 2021, at 10:00 am.
FSN E-Commerce Ventures, the Nykaa, and Nykaa Fashion chain operator, traded at more than 60 percent premium in the grey market, ahead of its listing.
The company sold shares in the price band of ₹ 1,085 – ₹ 1,125 per share, and its ₹ 5,351 crore initial public offering (IPO) was subscribed 82 times by the end of the bidding process and received bids for 216.59 crore equity shares against the offer price of 2.64 crore equity shares.
Qualified institutional buyers had put in bids 91.18 times the portion set aside for them, and non-institutional investors’ reserved portion was subscribed 112.02 times. A part set aside for retail investors was subscribed 12.24 times, and employees saw 1.88 times subscriptions.
The scrip got listed for Rs. 2018 apiece on the National Stock exchange, thereby gaining 79.38% more from its offer price of Rs. 1125. While it opened at Rs. 2001 on the BSE, rising 77.87% from the issue price.
(Image: Falguni Nayar, the founder and owner, managing director, and CEO of Nykaa, with her daughter Advaita at the company’s IPO listing ceremony at the National Stock Exchange in Mumbai, Maharashtra.)
How and When to invest? – a guide from specialist
Arijit Malakar (Head Research – Retail) says, “ Nykaa’s growth profile is superior to both its International peers as well as Indian retailers, hence it has good growth prospects.”
Santosh Meena (Head of Research – Swastika Investment) initiates by saying that the company’s upward momentum would continue. Still, the investors are suggested to hold this particular stock for the long term as it is one of the few stocks in the new-age companies to own in your portfolio.
Another expert, Aastha Jain (Senior Research Analyst – Hem Securities), added that investors should wait and not immediately think of making fresh investments in the company.
He also suggested booking partial profits in the company and keeping the remaining for the longer term.
