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E-commerce beauty giant Nykaa’s IPO subscribed over 40 times by anchor investors

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Nykaa IPO: FSN E-commerce has priced its IPO from Rs 1,085 to Rs 1,125 per share

Cosmetics-to-fashion startup Nykaa has received bids for 40 times the number of shares it plans to sell to anchor investors in its initial public offering (IPO), a source with direct knowledge said on Wednesday, indicating strong interest in the sale. .

Investment firm BlackRock Capital Group and asset manager Fidelity were among the top buyers in the sale of shares worth Rs 2,396 crore that FSN E-commerce Ventures, the company that owns the Nykaa brand, offered to institutional investors, the source said, Decline of identity because the information was not public.

The sale of shares to anchor investors will close later on Wednesday. Nykaa did not immediately respond to a request for comment.

FSN E-commerce has priced its IPO at Rs 1,085 to Rs 1,125 per share, taking Nyka’s valuation to $7.11 billion.

The company aims to raise around $500 million through a three-day IPO subscription from October 28 to November 1. The IPO consists of issue of new shares of up to Rs 52.5 crore and offering of 43.1 million existing shares.

Nykaa, whose investors include private equity firms TPG, Fidelity and Indian film actress Alia Bhatt, has said it will use the proceeds of the IPO to set up new retail stores, fund capital expenditure and repay debt.

The book running lead managers for the IPO include BofA Securities, Morgan Stanley, Kotak Mahindra Capital, Citigroup, ICICI Securities and JM Financial.

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