On the last day of subscription on Monday, FSN E-Commerce Ventures Ltd’s maiden share-sale, which runs the online marketplace for beauty and wellness items Nykaa, was subscribed 81.78 times, owing to strong demand from institutional investors.
According to NSE data, the Rs 5,352 crore IPO attracted bids for 2,16,59,47,080 shares against the 2,64,85,479 shares on offer.
FSN E-Commerce Ventures’ initial public offering (IPO) included a fresh issue of equity shares for Rs 630 crore as well as an offer for sale (OFS) of 4,19,72,660 equity shares by the promoter and existing shareholders.
The offer’s price range was Rs 1,085-1,125 per share.
The company intends to utilise the profits from the IPO to expand by opening new retail outlets and warehouses, according to the draught filings.
It also intends to pay off part of its debt, which should lower interest expenses and boost profitability.
Furthermore, the business intends to use the IPO funds for marketing and promotional efforts, with a focus on strengthening existing 13 owned brands, such as Nykaa Cosmetics, Nykaa Naturals, and Kay Beauty, as well as building and promoting new brands.
Under its two business verticals, Nykaa and Nykaa Fashion, the company provides a comprehensive range of beauty, personal care, and fashion products, including its own produced brand products.