The IPO of Nykaa’s parent company FSN E-Commerce Ventures Ltd was fully subscribed on the very first day on Thursday. The IPO was open for subscription for three days, which is scheduled to close on November 1. The overall book was subscribed 1.56 times excluding anchor allotment. As of 5 pm, the Institutional Investors category had subscribed 1.40 times of the 14.20 million shares on offer. The Reserve Portion for Non Institutional has 60% booking.
Stock exchange data shows that retail investors, whose exposure to the IPO cannot exceed the maximum limit of Rs 2 lakh, subscribed for 351% or 3.51 times the shares.
According to BSE data, the firm on Wednesday raised Rs 2396 crore from anchor investors by allotting 21.3 crore shares at Rs 1125 per share. Investors participating in the anchor book include BlackRock Global Funds, Fidelity Funds, Nomura, Government of Singapore, Monetary Authority of Singapore, Canada Pension Plan Investment Board, T Rowe Price, Tiger Global Investments Fund, Goldman Sachs and Morgan Stanley.
Nykaa IPO: IPO open today, know whether you should subscribe to the issue or not?
The firm has fixed the price band of its IPO at Rs 1085 to 1125 per share. Accordingly, the valuation of the company is Rs 52,574 crore (about $ 7.4 billion).
The firm has increased its fresh issue to Rs 630 crore from the earlier Rs 525 crore. Offer for sale has come down from 43.11 million shares to 41.97 million shares. The firm plans to be listed on November 11. On the upper end price band, the firm will raise around Rs 5352 crore.
According to the information, Nyka’s parent company FSN E-Commerce Ventures had reserved shares worth about Rs 2,400 crore for anchor investors. Investment firm BlackRock Capital Group and asset manager Fidelity made the biggest bid for these shares. Apart from this, many big global institutional investors including Canada’s largest pension fund manager CPPIB and Singapore’s sovereign wealth fund GIC participated in this bid.
Nykaa was started nine years ago by Falguni Nair, a former investment banker. Apart from Falguni, its promoters include Sanjay Nair, Falguni Nair Family Trust and Sanjay Nair Family Trust.
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