Nykaa founder India's 1st self-made richest woman

Hyderabad: Falguni Nayar, founder of Nykaa, an online store for cosmetics and beauty products,became India's wealthiest self-made female billionaire after going for an initial public offering (IPO). She is the seventh woman billionaire in the country as per India Bloomberg Billionaires Index. Nykaa's parent entity FSN E-Commerce Ventures Ltd is the first unicorn led by a woman in the country. After the IPO debut, the company's market valuation closed at Rs1.04 lakh crore on the BSE.

"Nykaa had a stellarlisting at 79 per cent premium at Rs 2,018 against IPO price of Rs 1,125. It is the first of its kind listing in the e-commerce space and validated from IPO subscription of 82 times," said Sneha Poddar, AVP Retail Research at Motilal Oswal Financial Services.

Nykaa is India's first unicorn startup headed by a woman.

It was founded by Falguni Nayarin 2012, selling beauty and personal care products on its mobile app and website. Within eight years, the 58-year-old Nayar has joined India's women billionaires list. Endorsed by Hindi actress Katrina Kaif, the e-commerce platform has its own brand of products since 2015 and recently began selling clothes and household products. It has a growing high street presence with 80 stores across 40 cities in the country.

Nykaa makes dream debut; lists at over 96% premium; mcap soars over Rs1 lakh cr

Shares of FSN E-Commerce Ventures, which runs online marketplace for beauty and wellness products Nykaa, listed with a huge premium of over 96 per cent against the issue price of Rs 1,125 on Wednesday.

The stock debuted at Rs 2,001, reflecting a jump of 77.86 per cent on the BSE. It then zoomed 99.83 per cent to Rs2,248.10 during the session. The stock closed at Rs 2,206.70, up 96.15 per cent. On the NSE, it listed at Rs 2,018, a premium of 79.37 per cent. It closed at Rs 2,208, a gain of 96.26 per cent. The company's market valuation went past Rs1 lakh crore mark and closed at Rs1,04,438.88 crore on the BSE.

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. The company has a diverse portfolio of beauty, personnel care and fashion products, including its owned manufactured brand products, under its two business verticals -- Nykaa and Nykaa Fashion.

Bumper opening of lifestyle-focused consumer technologies platforms Nykaa's IPO has catapulted its promoters — the Nayar family — as one of India's richest self-made billionaires.

At present, the promoter family holds around 53 per cent stake in firm FSN E-Commerce Ventures, which owns Nykaa. The stake at the opening price of Rs 2,001 per share was worth over $6.5 billion. Consequently, the promoter family joined the billionaires' ranks.

The promoter family has stakes of Falguni Nayar, MD and CEO, FSN E-Commerce Ventures, AnchitNayar, AdwaitaNayar, and the Nayar Trust. Listed at Rs 2,001 at the opening bell, the scrip, as against the offer price of Rs 1,125, went to touch a high of Rs 2,248.

Ravi Singh, head (research) & vice-president, ShareIndia, said: "We advice investors to cover their 50 per cent position at current premium and rest hold with closing stop loss of 1,850 for the target of 2,500. Nykaa has a strong fundamental so investors may hold their position for longer period."