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Nykaa’s Powerful Debut At Stock Market; Falguni Nayar The Next Billionaire?

Being ardent lovers of the fashion & beauty world, we all are very much familiar with the cosmetics-to-fashion platform, Nykaa. The platform has a bumper debut on Dalal Street on Wednesday. On the first day, Nykaa’s shares were listed at Rs 2,001 at the Bombay Stock Exchange with a premium of 77.87% over the issue price of Rs 1,125. The company’s stock was earlier scheduled to be listed on Thursday. However, the stock market debut was pushed a day earlier, i.e. on Wednesday. 

The National Stock Exchange data showed that Nykaa’s IPO (Initial Public Offering) received bids of more than 216.59 crore shares against an issue size of over 2.64 crore shares, which signaled a blockbuster and stellar debut of the new-age startup. Nykaa IPO was opened for subscription from 28th October – 1st November 2021. 

Hinting that there is strong investor demand for a startup like Nykaa, Mr Ajit Mishra (vice-president, research, Religare Broking) said: “Nykaa has a seen a strong listing due to positive market sentiment … since it is the only profit-making company in the digital space, it is receiving higher investor traction,” 

Apart from Nykaa, many Indian companies, including Oyo, Delhivery, Paytm and Ola, are planning to file for IPO. The food delivery firm Zomato also made a remarkable debut at the stock market in July this year. 

Nykaa, incorporated in 2012, is scaling new heights as company founder Falguni Nayar has become India’s wealthiest self-made female billionaire, according to the Bloomberg Billionaires Index. Falguni Nayar has led a top investment bank, Kotak Mahindra Capital Company, before founding Nykaa in 2012. Cut to today, Nykaa has become our one-stop destination for buying beauty products, accessories, and fashion apparel. 

FSN E-commerce Ventures is Nykaa’s parent company and the country’s first women-led unicorn, which has finally hit the stock market and roared like a lion. Nykaa’s eminent investors include Bollywood celebrities Alia Bhatt and Katrina Kaif. Though Nykaa initially sold products through its website and mobile app, it now has around 80 brick-and-mortar stores across India. (data as of 31st August 2021)

As of now, Nykaa’s market capitalization has crossed Rs 1 lakh crore. Investors can book 50% profit and keep the remaining 50% for the long-term with a two-year time-horizon minimum. In fact, as per Santosh Meena, Head of Research, Swastika Investmart, Nykaa is one of the very few new edge startups that is going to grow in double digits for many years. 

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