The IPO of Nykaa, a start-up company selling beauty products, is opening tomorrow (November 28, 2021). Even before the opening of the IPO, its shares were trading at a premium of Rs 670 in the gray market. Those dealing in unlisted shares say that investors are showing keen interest in this IPO. Nykaa will raise capital of Rs 5325 crore through this IPO. The company has kept the price band of its IPO from Rs 1085 to Rs 1125.
Investors can bid in lots of 12 shares under this IPO. This means investors will have to invest Rs 13,500 for at least one lot. Through the IPO, new shares worth Rs 630 crore will be issued, while an offer for sale (OFS) of Rs 4721 crore will be brought. will increase from 47.4 percent. 75 percent of the shares are reserved for Qualified Institutional Buyers (QIBs), while 15 percent of the shares are for non-institutional investors. Only 10 per cent of the shares are reserved for retail investors. Nevertheless, if you are a retail investor and want to invest in this IPO, then let us know what are the opinions of well-known brokerages and research firms.
Motilal Oswal: Subscribe
Analysts of Motilal Oswal say that in online BPC market Nykaa is in a leadership position. The company’s customer centric approach, profitable tech platform and strong (capitalized) business model make its IPO attractive. The issue is on a post issue and annualized model 16.1XFY22 EV/Sales, which puts it at par with other unicorns in the country. Motilal Oswal believes that in the era of increasing penetration of online BPC -fashion market Nykaa is the right place. Hence investing in this IPO can be advised.
Prabhudas Lilladher: Subscribe
This brokerage firm is bullish about this IPO. The company says that this IPO will be on the sale of 2021. 12.6xEV/GMV and in 2024 sales at ~4.7xEV/GMV. The brokerage firm believes that its earnings may see a growth of 50 percent in the coming years. Margins can be in double digits. Annual growth of 35% can be seen in sales. So you can invest in it.
The size of the IPO of Paytm is likely to increase, according to sources, the issue may be of 18,300 crores
BP Wealth: Subscribe
Brokerage firm says Nykaa has established itself as a preferred destination for shopping for luxury and prestige products. Although there may be a risk given its high valuation, but given the huge potential for profits, cash flow and growth and the confidence of the company’s management in itself, money can be invested in this IPO.
Anand Rathi: Long Term Subscription
The brokerage firm says that this IPO can be subscribed but it looks expensive at the upper price band. There is no listed company in the country which is in business category like Nykaa. The company has a good image among the customers and is a brand with aspiration.
(Article: Kshitij Bhargava)
(The stock recommendations given in the story are those of the respective research analysts and brokerage firms. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)