Nykaa IPO
The Initial Public Offering (IPO) of Nykaa has opened for public subscription on Thursday and will conclude on November 1.
Founded in 2012, Nykaa is a digitally native consumer technology platform. It has a diverse portfolio of beauty, personal care and fashion products, including its own-brand products manufactured by third-party manufacturers.
Ahead of the IPO, FSN E-Commerce Ventures Ltd, which operates the online beauty e-commerce platform said it has raised ₹2,396 crore from key investors. Nykaa had posted a net profit of Rs 61.9 crore in FY21 compared to a loss of Rs 16.3 crore in FY20. Its total income stood at Rs 2,452.6 crore in FY21 as against Rs 1,777.8 crore in FY20.
An INR 5,352-crore public issue, Nykaa has fixed a price band of Rs 1,085-1,125 per share.
This will be the biggest IPO since that of online food delivery firm Zomato’s INR 9,375-crore offering in July. Zomato , which won the prestigious ‘Startup of the Year’ category at the Economic Times Startup Awards 2021, was chosen by the elite jury of Corporate India, for executing a stellar debut on the Indian public markets, which has paved the way for the likes of Nykaa to debut on the stock exchanges.
Deepinder Goyal, cofounder and CEO of Zomato, said in an interview with the Economic Times that the company’s IPO earlier this year was not by design, but necessity as it had only about six months worth of cash to run with.
PayTM IPO
The public issue of Paytm, earlier known as One97 Communications, will consist of a fresh issue of ₹ 8,300 crore and an offer for sale of ₹ 10,000 crore by founder Vijay Shekhar Sharma and others.
The Paytm IPO will be the largest primary market issue in the history of India Inc, surpassing that of Coal India. Coal India had raised ₹ 15,000 crore more than a decade ago. While Paytm was earlier planning to raise ₹ 16,600 crore, it revised the amount to ₹ 18,300 crore in wake of heightened investor sentiment.
Paytm has built a multi-stack architecture through the payment options offered by the company — Paytm Wallet, Paytm UPI, Paytm Postpaid (Buy Now, Pay Later), credit cards/debit cards, Paytm PoS, All-in-One QR code, and Soundbox, among others.
Paytm has also decided not to go ahead with its pre-IPO share sale. It had plans to raise as much as $2.2 billion from its share sale, according to its draft prospectus.
On Monday, October 25, its unlisted shares traded around INR 3,400-INR 3,500.
Led by Founder and Chief Executive Officer Vijay Shekhar Sharma, Paytm has expanded beyond digital payments into banking, credit cards, financial services, and wealth management. It also supports India’s financial payments backbone, the Unified Payments Interface, or UPI.
As of FY21, its revenue from operations stood at Rs 2,800 crore from 114 million annual transacting users and it had facilitated 7.4 billion transactions.
PolicyBazaar IPO
PB Fintech, which operates online insurance platform Policybazaar and credit comparison portal Paisabazaar, will launch its ₹5,710-crore initial share sale next week on November 1. The price band of the issue has been at ₹940-980 a share.
PB Fintech has built India’s largest online platform for insurance and lending products leveraging the power of technology, data and innovation, according to Frost & Sullivan.In FY20, Policybazaar was India’s largest digital insurance marketplace with a 93.4 percent market share based on the number of policies sold
Who Wins?
Unlisted shares of these new-age companies have been lukewarm. The concerns about these unlisted shares running at a premium than their anticipated IPO price band have also kept the trading volumes low.
The stocks tend to do well during the listing gains before levelling out. The most important thing to look at is the valuation metrics, in which the Nykaa IPO may just end up being the winner.
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