BENGALURU, Nov 10 (Reuters) – Indian cosmetics-to-fashion platform Nykaa surged 96% in a blockbuster debut on Wednesday, fetching the country’s first women-led unicorn a valuation of nearly $14 billion.
Shares of FSN E-Commerce Ventures , the company that owns the Nykaa brand, ended at 2,205.80 rupees after debuting at 2,018 rupees in pre-open trade.
The debut price was a 79.4% premium to the offer price of 1,125 rupees and the shares were oversubscribed nearly 82 times last week. read more
Founded by former investment banker Falguni Nayar in 2012, Nykaa became popular by selling cosmetics and grooming products from domestic as well as international brands before expanding into fashion, pet care and household supplies.
“Nykaa is one of the very few profitable new-age companies and the first women-led unicorn that has also attracted lot of investor interest …,” said Sneha Poddar, assistant vice-president, retail research at Motilal Oswal Financial Services.
“(Its) key strengths lie in its inventory-led business model for the beauty and personal care segment.”
Nykaa’s investors include private-equity firm TPG, Fidelity and Indian celebrities Alia Bhatt and Katrina Kaif.
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