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Nykaa IPO: What is the current premium in the gray market? How much will you earn if you buy shares?

Highlights:

  • IPO open on 28 October will close on 01 November
  • The allotment will be finalized on November 08, the process of refund will be started from November 9.
  • Shares will be transferred in demat on November 10, listing will be done on November 11

New Delhi: The IPO of online fashion platform Nykaa is closing today. The Rs 5,352 crore IPO opened on October 28. The company plans to raise Rs 630 crore by sale of fresh equity shares, while existing shareholders will raise Rs 4,723 crore by selling their shares in the open market.

Heroine is managed by FSN E-Commerce Ventures. Its IPO on November 1 at 10.50 am has filled a lot of 5.25. The company is offering shares at Rs 1085-1125. Technology companies’ IPOs have been the talk of the town this year. The IPO of online food delivery platform Zomato also received an overwhelming response. It is important to know what the experts think about Heroine’s IPO.

According to Falguni Nair, founder of Nykaa, 60 per cent of his company’s orders come from tier-2, tier-3 cities. Also 70 per cent of orders come from old customers. The company claims that 8 per cent of the beauty market in the country while only 12 per cent of the fashion market is online, which has bright future growth prospects.

Most brokerage firms are positive about Nayak’s IPO and are also giving subscription ratings. However, Marwari Shares and Finance cautions against subscribing to this IPO. Heroine’s earnings per share is just Rs 2.54. In view of this, the company is offering shares at a PE ratio of 443.46. Along with this, the competition in this segment is also going to be very tough in the coming time.

On the other hand, Haim Securities advised to subscribe to this IPO saying that Nayak’s shares could be profitable in the long run. He also believes that the heroine has made her own identity. Religer Broking is also positive about this IPO. The heroine has reached a certain destination in the growing industry. The combination of strong growth and profitability makes it all the more attractive.

gray market premium

In the gray market, Nyka shares are being offered a premium of Rs 570, which is 50 per cent more than the issue price. Initially it was more than Rs 600. However, it declined due to exit from FIIs as well as lower-than-expected results from Q2.

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