Nykaa IPO Lists At 79% Premium At Rs. 2018/Share

The profitable beauty segment start up that garnered a huge investor interest is set to list today. Even on mixed global cues, Nykaa stock on the NSE listed at a price of Rs. 2018 per share on the NSE, while on the BSE the stock settled at a price of Rs. 2001 per share.

The start up company with a stock price of Rs. 2001 is now commanding a market capitalisation of Rs. 95,000 crore higher than 9 Nifty stocks. On the tremendous gains, Nykaa has become the 56th largest company in the country.

On the final bidding day, the over Rs. 5000 crore IPO that comprised both fresh issuance and OFS was subscribed 82 times.

In the grey market-the market of unlisted securities, post the allotment of shares, Nykaa was available at a premium price of Rs. 765 as on November 9, 2021. Even on mixed global cues, Nykaa stock on the NSE listed at a price of Rs. 2018 per share on the NSE, while on the BSE the stock settled at a price of Rs. 2001 per share.

The company aims to deploy the funds for expansion, setting new retail stores and warehouses. It also plans to repay its debt, which could bring down interest costs and shore profitability.

As per Elara Securities, the company which has the first mover advantage will help the company grow 25 percent over the next 5 years.

What to do with Nykaa post listing?

Analysts and experts suggests that 1/3 of the alloted stocks can be booked for profit and the rest can be maintained considering the company's asset light business model as well as other favourables. So, in case you have been allotted 14 shares, it shall be wise to sell 5 shares of the counter.

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