Nykaa IPO - Subscription Day 3

5paisa Research Team 5paisa Research Team 10th December 2022 - 04:33 pm

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 already oversubscribed on Day-1 itself. As per the combined bid details put out by the BSE at the close of Day-3, FSN E-Commerce Ventures (Nykaa) IPO was subscribed 81.78X overall, with heavy demand coming from the HNI segment and QIB segment. The issue has closed as on 01st November.

As of close of 01st November, out of the 264.85 lakh shares on offer in the IPO, FSN E-Commerce Ventures (Nykaa) saw bids for 21,659.47 lakh shares. This implies an overall subscription of 81.78X. The granular break-up of subscriptions was dominated by the HNIs and the QIB. On Monday, the QIB bids and NII bids gathered momentum as is the general trend in the IPO market.

Nykaa IPO Subscription Day-3

Category	Subscription Status
Qualified Institutional Buyers (QIB)	91.18 Times
Non Institutional Investors (NII)	112.02 Times
Retail Individuals	12.24 Times
Employees	1.88 Times
Overall	81.78 times

QIB Portion

The QIB portion of the IPO was subscribed 91.18 times at the end of Day-3. 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 13,086.13 lakh shares, implying a subscription ratio of a healthy 91.18X for QIBs at the close of Day-3. QIB bids typically get bunched on the last day and that was evident in the Nykaa issue.

HNI / NII Portion

The HNI portion got subscribed 112.02X (getting applications for 7,986.81 lakh shares against the quota of 71.30 lakh shares). This is a solid response on Day-3 with this segment seeing maximum response bunched on the last day. That is because, bulk of the funded applications and corporate applications, come in on the last day of the IPO.

Retail Individuals

The retail portion was subscribed a robust 12.24X at the end of Day-3, 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 581.83 lakh shares, which included bids for 455.08 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.1,085-Rs1,125) and has closed for subscription on 01st November 2021.

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