Indian cosmetics to fashion startup Nykaa got bids for 40 times the number of shares it expects to sell to anchor investors in its initial public offering (IPO), showing substantial interest in the sale. investment firm Blackrock Capital Group and asset manager Fidelity were among the top buyers in the $319.68 million sale of shares that FSN E-Commerce Ventures, the company that owns the Nykaa brand, offered to institutional investors.
SN E-Commerce priced its IPO at Rs 1,085 to Rs 1,125 per share, valuing Nykaa at up to $7.11 billion.
From October 28 to November 1, the company expects to generate almost $500 million with a three-day IPO subscription. The IPO comprises the issue of new shares worth up to Rs 525 crore as well as the sale of up to 43.1 million existing shares.
Nykaa, whose investors include TPG Capital, Fidelity, and Indian film actor Alia Bhatt, has said that the IPO revenues would be used to open new retail locations, support capital expenditures, and settle debts. BofA Securities, Morgan Stanley, Kotak Mahindra Capital, Citigroup, ICICI Securities, and JM Financial are among the bookrunning lead managers for the IPO.
