Nykaa IPO opens today: Should you subscribe? Check Anil Singhvis views and strategy for this issue
FSN E-commerce Ventures-owned beauty and wellness product online marketplace Nykaa initial public offering (IPO) has gone live today, October 28, 2021.
FSN E-commerce Ventures-owned beauty and wellness product online marketplace Nykaa initial public offering (IPO) has gone live today, October 28, 2021. Nykaa IPO will remain open for subscription until November 1, 2021, the last day for subscription. The Rs 5,352-crore public issue will comprise fresh stock and an offer for sale. The price band for this IPO has been kept at Rs 1,085-1,125 per share.
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Nykaa IPO opens today: Top 10 things retail investors should knowWhy should you subscribe?
Zee Business Managing Editor listed several positives for the company before recommending a buy for this offer. Singhvi said the first positive about this cosmetic company is that it has good track record of growth and also has better outlook. Another plus for this company is its promoters, who come with an impressive background. " The company also holds edge in terms of cash. It is a cash rich, profitable new age company," said Singhvi.
The only negative about this company is that it has not been consistent with its profit track record.
Important Timeline
Application starts: 28-10-2021
Application ends: 01-11-2021
Allotment begins: 8-11-2021
Refund initiation: 9-11-2021
Allotment date: 10-11-2021
Listing on exchange: 11-11-2021
Note: The dates are as per discount broker Upstox
Purpose of Nykaa IPO:
The company plans to use proceeds from the IPO to set up new retail stores for some of its units worth Rs 35 crore. A separate 35 crore has been earmarked for warehousing project, Rs 200 crore for marketing of its brands, Rs 130 crore for repayment of loans and 25 per cent of net proceeds for general corporate purposes, said Upstox.
About the Company:
Incorporated in 2021, Nykaa is the largest specialty beauty and personal care (BPC) retailer in India in terms of value of products sold in the financial year 2021, as per the company. It is one of the fastest growing fashion platforms in India based on Gross Merchandise Value growth, claims company.
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