Nykaa joins the top 50 most valuable companies, with stock up 109 percent from its IPO price

Nykaa was ranked 48th in overall market capitalization at 12:10 PM, according to BSE data, with a market capitalization of Rs 1.10 trillion.

FSN E-Commerce Ventures (Nykaa) made it into the top-50 most valuable companies in terms of market capitalization in the country after its stock price more than quadrupled from its initial offering price. The stock touched a new high of Rs 2,349 after rising 6% on the BSE in the intraday session on Friday. With today’s increase, the stock has risen 109 percent from its initial public offering (IPO) price of Rs 1,125 per share.

Nykaa was ranked 48th in overall market capitalization at 12:10 p.m., according to BSE data, with a market capitalization of Rs 1.10 trillion. In terms of market capitalization, the company has now eclipsed two-wheeler manufacturer Bajaj Auto and personal products manufacturer Dabur India.

Nykaa is currently ranked second behind food tech giant Zomato, with a market capitalization of Rs 1.17 trillion, according to data.

Nykaa made a great stock market debut on Wednesday, November 10, 2021, when its shares finished at Rs 2,207, a huge 96 percent premium over its issue price of Rs 1,125 per share, on the BSE.

FSN E-Commerce Ventures, which owns Nykaa, had a robust investor reaction to its Rs 5,300-crore initial public offering (IPO), which was subscribed 82.4 times. The proceeds of the new issue will be used to increase brand visibility and awareness, pay down debt, and open retail locations and warehouses, among other things.

Nykaa, or FSN E-Commerce Ventures, is a consumer technology platform that provides consumers with a content-led, lifestyle retail experience through a diversified portfolio of beauty, personal care, and fashion products, including their own brand.

Nykaa is India’s leading specialty beauty and personal care platform in terms of product value sold in FY21, as well as one of the fastest-growing fashion platforms in terms of GMV growth. Among India’s largest online beauty and personal care platforms, the company has the highest average order value (AOV).

According to the shareholding pattern data, promoters held 52.56 percent of Nykaa after its IPO, while public shareholders held 47.44 percent. Individual owners had 13.08 percent of public stock, while overseas portfolio investors held 4.54 percent, according to data.

Meanwhile, Nykaa’s board of directors will meet on November 14, 2021, to discuss and approve the company’s financial results for the quarter and half year ending September 30, 2021.

Nykaa’s foray into the fashion industry looks promising. Despite lower margins in FY22 (due to lower ad expenditure in FY21), we forecast consistent profit expansion driven by scale economies. Over the course of FY19-21, the company has increased margins from 1.8 percent to 6.6 percent, making it one of the few E-commerce companies to break even. Nykaa can maintain a CAGR of 35% in revenue and 50% in EBITDA with double-digit margins over the next five years, according to Prabhudas Lilladher, a brokerage business.

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