Nykaa’s parent company, FSN E-Commerce ventures, was valued at over one lakh crore rupees within minutes of listing.

Money Stock Market Wednesday, November 10, 2021 - 14:51

Beauty e-commerce Nykaa, which saw a stellar listing on the bourses on the morning of Wednesday, November 10, saw founder Falguni Nayar become India’s wealthiest self-made female billionaire. After the stock listed at a 79% premium and surged to as much as 89% after listing, Falguni Nayar net worth surged to $6.5 billion as she owns roughly half of Nykaa, according to Bloomberg. This makes her the 59-year-old former investment banker only the seventh female billionaire in the country, and the third self-made one.

Nykaa’s parent company, FSN E-Commerce ventures, was valued at over one lakh crore rupees within minutes of listing.

“I started Nykaa at the age of 50 with no experience in retail or technology or beauty or fashion. With that, to everyone across India who has ever had a dream, especially women with a dream, I hope the Nykaa journey — an Indian-born, Indian-owned and Indian-managed dream-come-true — can inspire each of you to be the Nykaa of your lives," Falguni Nayar said at the listing ceremony. 

Nykaa’s stock listed at a premium of Rs 2,001, up 77.86% on the BSE from the issue price of Rs 1,125. After its debut, the stock zoomed by 98.7%, touching a high of Rs 2,235.during the day. At the time of writing, the stock was writing at Rs 2,199. On NSE, it listed at Rs 2,018, a premium of 79.37%.

On the final day of its IPO, FSN E-Commerce Ventures was subscribed 81.78 times earlier this month. The IPO, through which the company aimed to raise Rs 5,352 crore, had a price range of Rs 1,085-1,125 per share. The IPO consisted of a fresh issue of shares of up to Rs 525 crore ($70.63 million) and an offer for sale (OFS) of up to 43.1 million shares. Despite the stake sale, over half of the company is still owned by Falguni Nayar and family.

Nykaa owns six brands — Nykaa Cosmetics, Nykaa Naturals, Kay Beauty, Nykd by Nyka, Twenty Dresses and Pipa Bella.

Nykaa’s listing comes amidst several loss-making startups listing on the bourses amid the IPO boom. Nykaa is profitable, recording Rs 61 crore profit in FY20, following from a loss of Rs 16.3 crore in FY20. In FY21, the company saw 17.1 million orders being placed, an increase of 35.3% over FY20.

Of the amount it has raised, Nykaa in its RHP said plans to use Rs 35 crore to invest in its arms FSN brands (or Nykaa Fashions) to set up new retail stores.  Nykaa plans to use Rs 35 crore for capital expenditure, and Rs 130 crore for repayment of debt. In addition, Nykaa plans to use Rs 200 crore to enhance brand visibility and awareness

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