FSN E-Commerce Ventures touched a market capitalisation of Rs 1 lakh crore on Wednesday, as Nykaa shares began their journey in the secondary market. With that, Nykaa surpassed companies such as Britannia, Godrej Consumer, BPCL, InterGlobe, InfoEdge and Dr Reddy's in terms of market value.
At 11:00 am, the Nykaa stock traded at Rs 2,037, a premium of 81.1 percent over the issue price of Rs 1,125.
Earlier in the day, Nykaa shares debuted at Rs 2,001 on BSE, a premium of 77.9 percent over the issue price, and Rs 2,018 on NSE, a premium of 79.4 percent. The strong listing saw Nykaa enter the top-60 most valuable companies on the BSE.
The initial public offering (IPO) of FSN E-Commerce Ventures Ltd, which runs the online marketplace for beauty and wellness products Nykaa, was subscribed 81.78 times on the last day of subscription, mainly helped by huge interest from institutional investors. The price range for the offer was ₹1,085-1,125 per share.
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.
"Nykaa has a seen a strong listing due to positive market sentiment ... since it is the only profit-making company in the digital space, it is receiving higher investor traction," said Ajit Mishra, vice-president, research, Religare Broking.
However, the startup's valuations look expensive at these (levels) despite factoring in strong long-term growth prospects, Mishra added.
Several high-profile Indian startups have already filed or are planning to file for IPOs, including Ant Group-backed fintech firm Paytm, SoftBank-backed companies hotel aggregator Oyo, ride-hailing firm Ola and logistics provider Delhivery.
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