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Nykaa Set To Make Market Debut Today. Check What Analysts Say

As per the stock market experts, Nykaa shares may list up to 95 per cent premium as they are expecting it to list in the range of Rs 1900 to Rs 2200 per share levels.

Nykaa Set To Make Market Debut Today. Check What Analysts Say
Nykaa Set To Make Market Debut Today. Check What Analysts Say
outlookindia.com
2021-11-10T09:23:30+05:30

The market debut of Nykaa’s shares on Tuesday is being keenly watched as its initial public offering (IPO) saw huge interest.

As per the stock market experts, Nykaa shares may list up to 95 per cent premium as they are expecting it to list in the range of Rs 1900 to Rs 2200 per share levels.

Not only that but market observers feel that the grey market is also signaling strong listing gain for the bidders as Nykaa IPO GMP today is Rs 780, Rs 15 up from its yesterday’s GMP of Rs 765, reported Mint.

The company successfully raised Rs 5,351.92 crore through its public issue during its subscription period between October 28 to November 1.

Qualified institutional bidders had put in bids 91.18 times more, while the reserved portion for non-institutional investors was subscribed 112.02 times.

Commenting on Nykaa’s market debut, Ankur Saraswat, research analyst at Trustline Securities, told Moneycontrol that under a strong and profitable business model, the listing gain can be expected around Rs 750 per share or 66 percent over IPO price.

Similarly, Aayush Agrawal, senior research analyst, merchant banking at Swastika Investmart, expects Nykaa 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,” he said.

Gaurav Hinduja, analyst at GEPL Capital, said Nykaa was subscribed 81.78 times at the end of day three. Considering the massive investor interest, we expect around a strong 60 percent premium on listing.

Nykaa is an Indian e-commerce company primarily into beauty, skin care and wellness products. It was founded by Falguni Nayar, a banker-turned-entrepreneur, in 2012.  The company boasts of 256,149 stock-keeping units (SKUs) from 2,644 brands in beauty and personal care segment and around 2.8 million SKUs across 1,434 brands in the fashion segment. Although, majorly an e-commerce platform, its offline channel comprises of 80 physical stores across 40 cities in India.

Nykaa's key operating metrics have improved significantly over the years. “NYKAA’s revenues grew at a compounded annual growth rate (CAGR) of 48.2 per cent to Rs 2,441 crore in FY 2021 as compared to FY 2019. Contribution profit witnessed a CAGR growth of 46.3% to INR 735 crore,” according to their financial report.

 

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