“A good market reception is very encouraging,” said Nayar, chief executive officer of Nykaa.
Overall, Nykaa will be the 55th listed company in the Rs 1-trillion-plus m-cap club, ahead of firms like Godrej Consumer and Britannia.
Investors, they said, are looking at Nykaa as a play on expected growth in online beauty and personal care .
Nykaa’s key strength lies in its inventory-led business model for the BPC segment, which allows it to offer authentication for all its products and ensures availability and efficient distribution,” said Sneha Poddar, AVP of retail research at Motilal Oswal Financial Services.
Besides, the company’s shareholding is dominated by domestic investors, which also breaks the stereotype that you need large foreign investor backing to be successful,” said an investment banker requesting anonymity.
Nykaa had reported a net profit of Rs 62 crore for the financial year 2020-21 on revenues of Rs 2,440 crore and GMV of $540 million.
The remaining Rs 4,722 crore was an offer for sale.
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