New Delhi: Nykaa’s parent firm FSN E-Commerce Ventures’ initial public offer (IPO) opened for subscriptions on Thursday (October 28). Within an hour of opening, the retail quota was fully subscribed, signalling a strong demand among investors. 


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According to National Stock Exchange (NSE) data, retail investors had already applied for 55,47,960 shares against 47,53,187 shares quota in the offer -  an oversubscription of 1.17 times. 


Besides retail investors, Nykaa was able to win over anchor investors, which also oversubscribed for the initial offer. Thanks to the fabulous response from investors, Nykaa IPO has received a subscribe rating from most of the major brokerages and financial analysts. 


With robust demand for Nykaa IPO in the market, it is expected that the initial share will provide bumper listing gains to subscribers. The share is already receiving a decent premium in the grey market. 


Founded in 2011 by Falguni Nayar, Nykaa has become one of the fastest-growing omnichannel marketplaces in the country. The company basically sells women cosmetics on the online platform. However, other products such as clothing and men cosmetics are also available on the platform. 


The company’s IPO that has opened for subscriptions from today will be live for three market days till November 1 (Monday). The company has fixed the price band for the initial share sale at Rs 1085- Rs 1125 apiece. Also Read: IRCTC Buddhist Circuit Package: Visit Buddhist destinations in India in budget, check dates, fare


With the funds raised from the IPO, Nykaa will aim to expand its physical presence by setting up new retail stores and warehouses. The company is also planning to use the fresh moolah to pay its debt that will help the company further improve its profitability. Also Read: SBI Kisan Credit Card: Get loans up to Rs 3 lakh, know how to apply and documents required