Nykaa's Rs 5,300-crore IPO sees strong interest; subscribed 82x

The Rs 5,300-crore initial public offering (IPO) of FSN E-Commerce Ventures, which operates Nykaa, saw strong investor interest and was subscribed 82.4 times on Monday, the concluding day of the issue.

It received 2.16 billion bids for the 21.2 million shares, excluding the anchor portion, that were on offer. The institutional investor portion was subscribed 92 times, the wealthy investor portion 112.5 times, the retail investor portion 12.3 times, and the portion reserved for employees by 1.8 times.

This is the second biggest IPO since that of food delivery start-up Zomato’s, the first by an Indian unicorn. Zomato drew bids worth Rs 2 trillion and it was subscribed more than 38 times.

Last week, the company allotted shares worth Rs 2,396 crore to a bunch of large foreign as well as domestic funds. The anchor investors submitted bids worth over Rs 95,000 crore and demand was 40 times more than shares on offer. The anchor investors included the Canada pension fund, BlackRock, and Fidelity, among others.

FSN E-Commerce Ventures had set a price band of Rs 1,085-1,125 apiece for its IPO, which comprised a fresh issue of Rs 630 crore and an offer for sale (OFS) of Rs 4,722 crore.

The company plans to utilise the proceeds of the fresh issue for improving its brand visibility and awareness, debt repayment, and setting up retail stores and warehouses.

PB Fintech subscribed 58% 

The initial public offering (IPO) of PB Fintech, which owns Policybazaar and Paisabazaar, was subscribed 58 per cent on Monday, the first day of the issue. 

The institutional investor portion was subscribed 62 per cent, the wealthy investor portion 7 per cent, and the retail inv­estor portion was fully subscribed. The company on Fri­day allotted shares worth Rs 2,569 crore to anchor investors. It has priced the IPO between Rs 940 and Rs 980, which will conclude on Wednesday. The firm plans to raise Rs 5,625 crore. And the issue comprises a fresh issue of Rs 3,750 crore and an OFS of Rs 1,875 crore. 

Meanwhile, the SJS Enterprises IPO has been subscribed 32 per cent. The institutional portion remain­ed unsubscribed, the wealthy investor portion by 1 per cent and the retail investor portion by 64 per cent.

The company provides an online platform for insurance and lending products. The company generates revenue for Policybazaar from the insurance commission that it receives from its insurer partners. And additional services that it provides such as telemarketing and other services relating to sales and post-sales services, account management, premium collection and various other services.  For Paisabazaar from the commission, it receives from its lending Partners, credit advisory and related services.