BENGALURU (Businesshala) – Shares of cosmetics-to-fashion platform Nykaa posted a blockbuster opening on Wednesday, valuing the Indian company at nearly $13 billion, in the latest startup listing after food delivery firm Zomato’s stellar debut in July.
Shares of profit-making FSN E-commerce Ventures, which owns Nykaa brand, rose 89.2% to Rs 2,129 after opening at Rs 2,018 in pre-open trade.
The first price was at a 79.4% premium to the initial public offering (IPO) price of Rs 1,125, giving the company a valuation of Rs 954.37 billion ($12.86 billion).
The company’s offering last week drew bids worth $32.55 billion as it was oversubscribed nearly 82 times, reflecting strong investor demand for a startup that, unlike many others, has already achieved profitability. .
Ajit Mishra, Vice President (Research), Religare Broking said, “Nykaa has witnessed strong listings due to positive market sentiment….
However, considering the strong long-term growth prospects, valuation of startups seems costly at these (levels), Mishra said.
Several high-profile Indian startups have already filed or are planning to file for IPOs, including Ant Group-backed fintech firm Paytm, SoftBank-backed companies like hotel aggregator Oyo, ride-hailing firm Ola and logistics provider Delhivery. .
The listing comes at a time when companies are trying to cash in on an Indian market, which has hit a record high due to a drop in COVID-19 cases, reopening of the economy and ample liquidity.
Nykaa, which deals in two broad segments, namely Beauty & Personal Care and Apparel & Accessories, was incorporated in 2012 and is fast becoming a popular name among Indian consumers.
The startup, whose investors include private-equity firm TPG, Fidelity and Indian celebrities Alia Bhatt and Katrina Kaif, runs its online operations through mobile applications and websites with 80 brick-and-mortar stores nationwide as of August 31 .