Business

Nykaa IPO Opens Tomorrow: Should You Subscribe? Learn what experts say

Highlights:

  • Nayak’s IPO will open on 28 October and close on 1 November
  • Nayak’s IPO has been given subscription rating by most brokerage firms
  • However, Marwari Securities has asked investors to be cautious.

Popular beauty products brand Nykaa’s IPO is opening tomorrow, Thursday. Most brokerage houses are positive about Nayak’s IPO. He has considered it appropriate to subscribe to this IPO. However, Marwari Shares and Finance has asked investors to be cautious. The brokerage firm has asked to file IPO cautiously.

The brokerage firm, in its IPO report, has said that the company is a leader in lifestyle and is focusing on technology platforms for customers. However, this valuation has been done keeping in mind the last financial year so we need to be careful.

The IPO of Nayak will open on Thursday 28 October and can be subscribed till Monday 1 November. The company will raise Rs 630 crore through the sale of its fresh equity shares. Promoters and existing shareholders will sell 43.11 million shares worth Rs 4,723 crore.

In the BPC (Beauty and Personal Care) market, Nayak has the potential to grow at 12 per cent per annum till 2025. Whereas by 2025, the fashion market is expected to grow at an annual rate of 18 per cent.

According to Haim Securities, having seen the operations, strong management team, benefits and growth opportunities in the industry, we believe that the company has created an industry of its own. Ham Securities has also given subscription rating and long term rating to this IPO.

Nayika was founded by Falguni Nair in 2012. Falguni Nair worked as a former investment banker in Kotak Mahindra Bank. Nykaa is a multi-brand beauty and personal care platform in India. It is fast growing in the fashion and lifestyle segment. Also the heroine is trying to launch a special heroine for men.

Reliance Securities has also given long term subscription rating to this IPO. There is a huge opportunity in the beauty and personal care market especially in India when people focus on brands and shop easily on platforms like e-commerce. Unique business model and first mover advantage keep the heroine ahead.

Prabhudas Lilladher, another brokerage firm, said, “We believe that the CAGR in sales of Nykaa can be sustained around 35 per cent. Whereas EBITDA can remain above 50 per cent. We give subscribe rating to this IPO. Whereas Religare Broking has also said that Nayika plans to expand her business as well. So he has a lot of opportunities. So this issue is worth paying for.

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