The offer price of FSN E-business Adventures, the parent company of Nykaa, dropped by as much as 2% on Tuesday, falling below its maiden sale of stock price of Rs 1,125 as the end of the pre-Ipo secure in period approaches.
At 2:15 p.m., the stock was trading at Rs. 1,115 on the Public Stock Exchange, down 2.5%. Over the past five trading sessions, the stock has decreased by 3%. It has just decreased by 12.67 percent.
On November 10, the pre-IPO lock-in period for financial backers expires.
Approximately 67% of the shares, or 31.9 crore, are expected to be exchanged on the expiration day, according to JM Monetary.
HNIs like Harindarpal Singh Banga, Narotam Sekhsaria, and Sunil Kant Munjal will actually wish to sell their belongings, as will Steadview Capital Mauritius Ltd, TPG Development IV SF Pte. Ltd, and Beacon India Asset III.
If Nykaa follows Zomato’s lead, its stock price may decline even more sharply. On July 25, when 78% of its sections were released from the required one-year lock in period following the Initial Public Offering, portions of meal delivery platform Zomato plummeted over 13% to new lows.
On November 10, 2021, Nykaa debuted on the stock market with a staggering 79 percent premium.
JM Monetary is optimistic about the organisation for the time being. The financier remarked, “The continued business sector cost of Nykaa shows solid valuations compared to most conventional organisations, but it doesn’t account the development seeds that the firm is planting by putting resources into style and e-B2B pieces.”
The stock is rated as a buy, and its objective cost is Rs 1,780.
With an objective cost of Rs 1,250, ICICI Protections assesses the stock as a hold. “Investing in the distinct incentives of content, curation, and accommodation is profitable. We project income and centre benefit CAGRs (compound annual growth rates) of 42% and 90%, respectively, from FY22 to FY24.