India's Nykaa IPO heavily oversubscribed by anchor investors - source

Blackrock Capital Investment

27/10/2021 15:12

By Sankalp Phartiyal
    NEW DELHI, Oct 27 (Reuters) - Indian cosmetics to fashion
startup Nykaa 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 23.96 billion rupees
($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 1,085 rupees to 1,125
rupees per share, giving Nykaa a valuation of as much as $7.11
billion.  urn:newsml:reuters.com:*:nL4N2RI2WV
    The company aims to raise nearly $500 million through a
three-day IPO subscription from Oct. 28 to Nov 1. The IPO
involves issuing new shares worth up to 5.25 billion rupees and
offering up to 43.1 million existing shares.
    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.
    ($1 = 74.9493 Indian rupees)

 (Reporting by Sankalp Phartiyal
Editing by Euan Rocha and Mark Potter)
 ((sankalp.phartiyal@thomsonreuters.com; +91-11-49548064;))