The Zerodha co-founder added that the beauty products e-retailer listed at 1600 times price to earnings
Zerodha co-founder Nikhil Kamath on Wednesday took a dig at beauty products e-retailer Nykaa's IPO, stating, "Nyka lists at 1600 times price to earnings". In his tweet, the brokerage platform co-founder added that it would ideal for investors to head on a really long holiday.
The beauty start-up made a notable debut on bourses on Wednesday capping a market breaching a market capitalisation of Rs 1 lakh crore. It opened at Rs 2,108 per share on the National Stock Exchange, 79 per cent higher than the issue price of Rs 1,125 per share. It rose to an intra-day high of Rs 2,235. The stock debuted at Rs 2,001 on the Bombay Stock Exchange, reflecting a jump of 77.86 per cent on the BSE.
At the time of publishing, it was trading 10.36 per cent higher at Rs 2,208.35 per share on the BSE. On the NSE, it was trading 9.42 per cent higher at Rs 2,208.
The initial share-sale of FSN E-Commerce Ventures was subscribed 81.78 times earlier this month.
The Rs 5,352-crore IPO had a price range of Rs 1,085-1,125 per share.
Its IPO comprised a fresh issue of equity shares worth Rs 630 crore and an offer for sale of about 4.19 crore shares by the promoter and existing shareholders.
The previous issue size was Rs 525 crore.
Nykaa had stated earlier that it intends to use the proceeds from the IPO for further expansion by means of setting up new retail stores and establishing new warehouses, the draft papers stated. Additionally, it intends to retire some of the debt, which would potentially help bring down interest costs and further up profitability. This, alongside deploying the proceeds for marketing and promotional activities in order to strengthen its in-house brands such as Nykaa Cosmetics, Nykaa Naturals and Kay Beauty.