Nykaa IPO - Subscription Day 1

The Rs.5,352 crore IPO of FSN E-Commerce Ventures (Nykaa), consisting of a fresh issue of Rs.630 crore and an offer for sale or OFS of Rs.4,722 crore, was oversubscribed on Day-1 itself. As per the combined bid details put out by the BSE, FSN E-Commerce Ventures (Nykaa) IPO was subscribed 1.55X overall, with bulk of the demand coming from the retail segment followed by QIB segment. The issue closes on 01st November.

As of close of 28th October, out of the 264.85 lakh shares on offer in the IPO, FSN E-Commerce Ventures (Nykaa) saw bids for 409.73 lakh shares. This implies an overall subscription of 1.55X. The granular break-up of subscriptions were tilted in favour of retail investors but QIBs also participated on the first day of the IPO. QIB bids and NII bids typically come in only on the last day of the IPO.
 

FSN E-Commerce Ventures (Nykaa) IPO Subscription Day-1

QIB Portion

The QIB portion of the IPO was subscribed 1.39 times at the end of Day-1. On 27 October, FSN E-Commerce Ventures (Nykaa) did an anchor placement of 212.96 lakh shares at the upper end of the price band of Rs.1,125 to 174 anchor investors raising Rs.2,396 crore.

The list of QIB investors including a number of marquee names like Blackrock, Fidelity, Government of Singapore, ADIA, MAS, T Rowe Price, Aberdeen, Goldman Sachs, SBI MF, HDFC MF, ICICI Pru MF, Kotak MF, Tata MF; among others.

The QIB portion (net of anchor allocation as explained above) has a quota of 143.53 lakh shares of which it has got bids for 199.06 lakh shares, implying a subscription ratio of a healthy 1.39X for QIBs at the end of Day-1. QIB bids typically get bunched on the last day, but anchor response at 40 times does show good interest.

HNI / NII Portion

The HNI portion got subscribed 0.60X (getting applications for 42.65 lakh shares against the quota of 71.30 lakh shares). This is a fair response on Day-1 and this segment normally sees response on the last day. That is because, bulk of the funded applications and corporate applications, come in on the last day, so the actual picture should only get better. 

Retail Individuals

The retail portion was subscribed a robust 3.50X at the end of Day-1, showing strong retail appetite. However, it must be noted that retail allocation is just 10% in this IPO. For retail investors; out of the 47.53 lakh shares on offer, valid bids were received for 166.34 lakh shares, which included bids for 132.86 lakh shares at the cut-off price.

The IPO is priced in the band of (Rs.1,085-Rs1,125) and will close for subscription on 01st November 2021.

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