scorecardresearch
Nykaa trades at 68% premium in grey market ahead of listing on November 10

Nykaa trades at 68% premium in grey market ahead of listing on November 10

This indicates that shares of the company will make a strong debut on the BSE and NSE on November 10.

Nykaa offers an omnichannel experience to consumers Nykaa offers an omnichannel experience to consumers

FSN E-Commerce Ventures, the operator of Nykaa and Nykaa Fashion chain, is available at a premium of around 68 per cent in the unlisted market ahead of its listing on Wednesday. This indicates that shares of the company will make a strong debut on the BSE and NSE on November 10.

Shares of the company traded at a premium of Rs 760 in the unlisted market in the morning trade on November 9, according to Abhay Doshi, founder, UnlistedArena.com. At present, FSN E-Commerce Ventures is trading at Rs 1,885 in the grey market against the upper price band of Rs 1,125.
 
Earlier, the Rs 5,352-crore initial public offering was opened for subscription on October 28. The issue got subscribed nearly 82 times on the last day of subscription on November 1, aided by the strong response from qualified institutional buyers (QIB) and non-institutional investors (NII).

The quota reserved for QIBs got subscribed 91.18 times, while the category reserved for NII received a subscription of 112 times. The portion reserved for retail investors also got oversubscribed 12 times. The category reserved for employees was subscribed 1.88 times, data available on BSE showed.
 
FSN E-Commerce has a diverse portfolio of beauty, personal care and fashion products, including its owned brand products manufactured by the company. Nykaa offers an omnichannel experience to consumers. It operates its businesses primarily through arrangements with beauty, personal care and fashion brands, delivery companies, manufacturers, distributors and other vendors, including suppliers of packaging material. Most of the brokerages gave ‘Subscribe’ rating to the issue.  
 
Sharing his expectations on the upcoming listing, Aayush Agrawal, senior research analyst - merchant banking, Swastika Investmart said, “Nykaa saw a formidable response from investors. We expect shares to get listed around Rs 1,600-1,700. Eyeing the recently listed new edge business and Nykaa's growth plan we expect the company to perform much better. Thus, we recommend the investors to stay invested in the IPO where it can be a wealth creator in the next 2-3 years.”

Also read: Nykaa IPO fully subscribed on first day, retail portion booked 3.50 times

Also read: Nirmal Jain's important investment advice for retail investors

Also read: Nykaa IPO subscribed nearly five times on second day, retail portion booked 6.32 times