Cosmetic blockbuster at Dalal Street: Nykaa IPO propels Nayar to global billionaires’ club

Nykaa’s parent FSN E-Commerce Ventures Ltd listed at ₹2,018, a 79% premium over the initial public offering (IPO) price of ₹1,125, underscoring a strong vote of investor confidence.

Nykaa’s shares nearly doubled in their trading debut on Wednesday, in an indication the exuberance that has gripped India’s primary market since early this year hasn’t worn off.

Falguni Nayar with her daughter Advaita at Nykaa's IPO listing ceremony at the National Stock Exchange in Mumbai. (AFP)

Nykaa’s parent FSN E-Commerce Ventures Ltd listed at ₹2,018, a 79% premium over the initial public offering (IPO) price of ₹1,125, underscoring a strong vote of investor confidence. Thereafter, the shares almost doubled in intraday trading before closing at ₹2,205.80 on NSE, gaining 96%.

The robust listing day gains propelled the market value of Nykaa to over ₹1 lakh crore, surpassing profitable companies such as Hero MotoCorp Ltd, Bharat Petroleum Corp Ltd, Tata Consumer, Cipla and UPL.

To be sure, Nykaa is the only profitable unicorn to be listed on the domestic stock exchanges.

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.

Nayar’s beauty startup has jolted her to the ranks of the world’s richest.

Nayar, who owns about half of Nykaa, is now worth almost $7 billion. She’s become India’s wealthiest self-made female billionaire, according to the Bloomberg Billionaires Index.

“I hope more women like me dare to dream for themselves,” Nayar said after markets closed. “Women need to allow the spotlight of their lives to be on themselves.”

Nykaa’s ₹5,350 crore IPO was subscribed 82 times. The share sale ended on November 1.