FSN E-Commerce Ventures or better known as Nykaa got listed on the bourses today and what a debut! As against the IPO price of Rs.1125, the stock was listed on the BSE a Rs.2001 and on the NSE at Rs.2018.

A bumper listing was expected as the IPO had received a fantastic response, subscribing almost 82 times. HNIs took the lions share at 112.02 times, followed by QIBs at 91.18 times and retails investors at 12.24 times.

In our IPO Analysis we had said, “While the IPO pricing is not the lowest, but company has one of the stronger business models, combining high growth and low cash burn (unlike Zomato, burning over Rs. 300 cr cash per quarter). Nykaa can very well be a case-study for building tech business with financial disciple and optimal cash burn.”

We had concluded, “High growth visibility with prudent profitability makes Nykaa one of the better e-commerce companies in India. Hence, we recommend subscription to the IPO.”