The initial public offering (IPO) of FSN E-Commerce Ventures Limited, which operates online beauty and personal care (BPC) brand Nykaa, continued its strong momentum into day two of subscription.
The Nykaa IPO has been subscribed 1.82 times the issue size, as per latest data available on the stock exchanges. The public issue has been subscribed 4.67 times in the retail category, 1.41 times in the QIB category and 0.78 times in the NII category. The GMP is likely to change depending on demand as the listing day approaches.
The company’s strong brand image, healthy financials, customer base and management are also reasons that have been cited by analysts who have asked investors to ‘subscribe’ to the Rs 5,352 crore IPO.
Former investment banker Falguni Nayar founded Nykaa in 2012 and it is one of the most popular omnichannel platforms for beauty and personal care products.
The company posted a net profit of over Rs 61 crore in FY21 compared to a loss of over Rs 16 crore in FY20. Its revenue from operations recovered in FY21 due to improvement in economic activity after the pandemic. The revenue grew 38 per cent year-on-year to Rs 2,453 crore in FY21.