Several high-profile Indian startups have already filed or are planning to file for IPOs, including Ola, Oyo, and Paytm.
Nykaa’s offering last week drew bids worth $32.55 billion (roughly Rs. 2,42,119 crore)
Shares of cosmetics-to-fashion platform Nykaa made a blockbuster opening on Wednesday, valuing the Indian company at near $13 billion (roughly Rs. 96,686 crore), in the latest startup listing after food delivery firm Zomato's stellar debut in July.
Shares of FSN E-Commerce Ventures, the profit-making company that owns the Nykaa brand, soared 89.2 percent to Rs. 2,129 after opening at Rs. 2,018 in pre-open trade.
The debut price was at a 79.4 percent premium to the initial public offering (IPO) price of Rs. 1,125, giving the company a valuation of Rs. 95,437 crore.
The company's offering last week drew bids worth $32.55 billion (roughly Rs. 2,42,119 crore) as it was oversubscribed by nearly 82 times, signalling strong investor demand for a startup that, unlike many others, has already achieved profitability.
"Nykaa has a seen a strong listing due to positive market sentiment ... since it is the only profit-making company in the digital space, it is receiving higher investor traction," said Ajit Mishra, vice-president, research, Religare Broking.
However, the startup's valuations look expensive at these (levels) despite factoring in strong long-term growth prospects, Mishra added.
Several high-profile Indian startups have already filed or are planning to file for IPOs, including Ant Group-backed fintech firm Paytm, SoftBank-backed companies hotel aggregator Oyo, ride-hailing firm Ola, and logistics provider Delhivery.
The listing comes at a time when companies are seeking to capitalise on an Indian market that has scaled record highs on the back of a decline in COVID-19 cases, a reopening of the economy and ample liquidity.
Nykaa, which functions in two broad segments, namely beauty and personal care and apparel & accessories, was incorporated in 2012 and swiftly became a popular name among Indian consumers.
The startup, whose investors include private-equity firm TPG, Fidelity and Indian celebrities Alia Bhatt and Katrina Kaif, runs its online operations through mobile applications and websites along with 80 brick-and-mortar stores across the country, as of August 31.
© Thomson Reuters 2021
For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.