India Beauty Site Nykaa Soars 89% in Trading After IPO
(Bloomberg) -- FSN E-Commerce Ventures Ltd., the entity that operates the Indian beauty startup Nykaa, rose as much as 89% on debut, even as the broader equity market dipped.
The Mumbai-based firm was trading at 2,063 rupees ($28) as of 10:13 a.m. in Mumbai Wednesday, after pricing its initial public offering at 1,125 rupees per share, the top of a marketed range. The company’s IPO raised 53.5 billion rupees through the sale.
Nykaa, led by former investment banker Falguni Nayar, has grown into India’s top e-commerce site for beauty products, with strategic endorsements from Bollywood stars and support among twenty-somethings. She founded the company after helping to guide other entrepreneurs through the process of taking their startups public.
The company has said the IPO proceeds will be used for a range of corporate purposes, including investing in FSN Brands or setting up new retail stores. The money may also be for capital expenditures or debt repayment.
Morgan Stanley and Kotak Mahindra are global coordinators and book running lead managers.
Founded in 2012, Nykaa now offers more than 2,500 brands of everything from mascara and makeup remover to velvety kohl Indian eyeliner and the body tattoo art called mehendi. Through its websites, apps and 70-plus brick-and-mortar stores, the company hit revenue of 24.5 billion rupees in revenue and other income in the fiscal year ended in March, according to its filing.
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