Nykaa shares make dream debut, surge over 96%

New Delhi: Making a stellar debut, shares of FSN E-Commerce Ventures, which runs the online marketplace for beauty and wellness products Nykaa, closed with a huge premium of over 96 per cent against the issue price of Rs 1,125 on Wednesday.

The stock debuted at Rs 2,001 apiece, reflecting a jump of 77.86 per cent on the BSE. Then, the scrip zoomed 99.83 per cent to Rs 2,248.10 during the day before closing at Rs 2,206.70. The closing price is 96.15 per cent higher than the issue price.

On the NSE, it listed at Rs 2,018, a premium of 79.37 per cent. The shares ended the day at Rs 2,208, a staggering gain of 96.26 per cent.

The company's market valuation went past Rs 1 lakh crore mark and closed at Rs 1,04,438.88 crore on the BSE.

"Nykaa, the largest speciality beauty and personal care platform in India, had a stellar debut today on the bourses listing at 79 per cent premium at Rs 2,018 (vs IPO price of Rs 1,125) with market cap hitting Rs 1 lakh crore.

"It is the first of its kind listing in the e-commerce space and thus garnered lot of interest, validated from IPO subscription of 82 times," said Sneha Poddar, AVP Retail Research at Motilal Oswal Financial Services.

Earlier this month, the initial public offer of FSN E-Commerce Ventures was subscribed 81.78 times.

The Rs 5,352-crore IPO had a price range of Rs 1,085-1,125 per share.

"Nykaa is debuting the secondary market on a strong note on the back of stellar response by the investors and strong fundamentals. It is among the few profitable new edge businesses. Further, it is a high growth company and into the right business where it may continue to grow in double digits for many years," said Santosh Meena, Head of Research at Swastika Investmart Ltd.

The company has a diverse portfolio of beauty, personnel care, and fashion products, including its owned manufactured brand products, under its two business verticals - Nykaa and Nykaa Fashion.