The shares of e-commerce company Nykaa rose over 82% on the National Stock Exchange at Rs 2,054 a piece after they started trading on Wednesday as compared to its initial public offering, or IPO, of Rs 1,125 per piece, reported Mint.
The stock closed at over 10% higher at Rs 2,208 per share on its first day on the Bombay Stock Exchange. The company’s market capitalisation has crossed over Rs 1 lakh core.
The IPO of FSN E-Commerce Ventures, Nykaa’s parent company, was subscribed 81.78 times on Wednesday, the last day of the three-day share sale. The price range for the offer was between Rs 1,085 and Rs 1,125 per share.
An initial public offering is a process in which private companies offer shares to the public through issuance of new stocks. At the end of the initial public offering process, the company gets listed on the stock exchange and is allowed to raise capital from public investors.
Falguni Nayar, the founder of Nykaa, has become become India’s wealthiest self-made female billionaire, according to Bloomberg Billionaires Index. She owns half the company. Her wealth is now about $7 billion (approximately Rs 51.98 thousand crore).
Nayar founded Nykaa in 2012. She was an investment banker before that. The company sells beauty, personal care and fashion products.
“We have built the company for multi-year growth to address a very large beauty and fashion e-commerce market in India,” Nayar said after markets closed on Wednesday. “The size of the prize doesn’t really matter. Being rewarded for doing what I love doing is the key. Share prices are the bonus.”