Shares of cosmetics-to-fashion platform Nykaa made a blockbuster opening on Wednesday, valuing the Indian firm at close to $13 billion (roughly Rs. 96,686 crore), within the newest startup itemizing after meals supply agency Zomato’s stellar debut in July.

Shares of FSN E-Commerce Ventures, the profit-making firm that owns the Nykaa model, soared 89.2 % to Rs. 2,129 after opening at Rs. 2,018 in pre-open commerce.

The debut value was at a 79.4 % premium to the preliminary public providing (IPO) value of Rs. 1,125, giving the corporate a valuation of Rs. 95,437 crore.

The firm’s providing final week drew bids value $32.55 billion (roughly Rs. 2,42,119 crore) because it was oversubscribed by almost 82 instances, signalling sturdy investor demand for a startup that, not like many others, has already achieved profitability.

“Nykaa has a seen a strong listing due to positive market sentiment … since it is the only profit-making company in the digital space, it is receiving higher investor traction,” mentioned Ajit Mishra, vice-president, analysis, Religare Broking.

However, the startup’s valuations look costly at these (ranges) regardless of factoring in sturdy long-term progress prospects, Mishra added.

Several high-profile Indian startups have already filed or are planning to file for IPOs, together with Ant Group-backed fintech agency Paytm, SoftBank-backed corporations resort aggregator Oyo, ride-hailing agency Ola, and logistics supplier Delhivery.

The itemizing comes at a time when corporations are looking for to capitalise on an Indian market that has scaled file highs on the again of a decline in COVID-19 instances, a reopening of the economic system and ample liquidity.

Nykaa, which features in two broad segments, specifically magnificence and private care and attire & equipment, was included in 2012 and swiftly grew to become a preferred title amongst Indian customers.

The startup, whose traders embody private-equity agency TPG, Fidelity and Indian celebrities Alia Bhatt and Katrina Kaif, runs its on-line operations by way of cell functions and web sites together with 80 brick-and-mortar shops throughout the nation, as of August 31.

© Thomson Reuters 2021