Nykaa IPO heavily oversubscribed by anchor investors

Indian cosmetics to fashion startup received bids for 40 times the number of shares it plans to sell to anchor investors in its initial public offering (IPO), a source with direct knowledge said on Wednesday, indicating strong interest in the sale.

Investment firm Blackrock Capital Group and asset manager Fidelity were among the top buyers in the $319.68 million sale of shares that FSN E-Commerce Ventures, the company which owns the Nykaa brand, offered to institutional investors, the source said, declining to be identified as the information was not public.

The share sale to anchor investors will close later on Wednesday.

Nykaa did not immediately respond to a request for comment.

FSN E-Commerce has priced its IPO at Rs 1,085 to Rs 1,125 per share, giving Nykaa a valuation of as much as $7.11 billion.

The company
aims to raise nearly $500 million through a three-day IPO subscription from October 28 to November 1. The IPO involves issuing new shares worth up to Rs 525 crore and offering up to 43.1 million existing shares.


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Nykaa, whose investors include private equity firm TPG, Fidelity and Indian film actress Alia Bhatt, has said it will use the IPO proceeds to set up new retail stores, fund capital spending and repay debts.

The bookrunning lead managers for the IPO include BofA Securities, Morgan Stanley, Kotak Mahindra Capital, Citigroup, ICICI Securities and JM Financial.


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