The initial public offering (IPO) of Nykaa was fully subscribed on the first day today. The issue was subscribed 1.55 times as it received bids for 4.09 crore equity shares against an IPO size of 2.64 crore shares.
The offer size has been decreased to 2.64 crore equity shares from over 4.75 crore equity shares after the firm raised Rs 2,396 crore from anchor investors on October 27.
Retail investors applied for 3.50 times of their reserved portion. Potion allocated for non-institutional investors was subscribed 60 per cent. Employees of the firm applied for 1,69,140 equity shares against the reserved portion of 2.5 lakh shares.
Qualified institutional buyers bought 1.39 times the portion allocated for them.
The initial public offering (IPO) of the online beauty e-commerce platform will close on November 1. Price band of the IPO has been fixed at Rs 1,085-1,125 per share. Nykaa plans to raise Rs 5,350 crore by going public.
The share sale comprises equity shares aggregating up to Rs 630 crore (fresh issue) and an offer for sale of up to 41,972,660 equity shares being offered by the selling shareholders (offer for sale or OFS).
A retail investor can apply for a minimum of 12 shares or 1 lot for which Rs 13,500 will have to be spent. One can apply for a maximum of 14 lots, comprising 168, shares for which bids worth Rs 1,89,000 will have to be placed.
The company received market regulator Sebi’s nod for the IPO earlier this month, along with six other firms. The firm will allot shares on November 8 and is likely to make its debut on the BSE and the NSE on November 11, 2021.
Falguni Nayar, Sanjay Nayar, Falguni Nayar Family Trust And Sanjay Nayar Family Trust are the promoters of the company.
Post the IPO, their stake will fall to 52.56 per cent from the current 54.26 per cent. Kotak Mahindra Capital, Morgan Stanley India, Bank of America Securities, Citigroup Global Markets India, ICICI Securities and JM Financial are the merchant bankers to the issue.