FSN E-Commerce Ventures Limited, owners of the popular cosmetics and fashion brand Nykaa, had tapped the capital markets with its fresh issue for Rs 630 crs and an offer for sale of 4,19,72,660 equity shares in a price band of Rs 1,085 to Rs 1,125. The issue had opened on Thursday the 28th of October and closed on Monday the 1st of November. The size of the issue at the top end of the price band was Rs 5,351.92 crs. Earlier the company completed allocation to anchor investors. The company allotted 2,12,96,397 equity shares at the top end of the price band of Rs 1,125 to 174 entities.
One third of the total allocation has been made to 21 mutual funds, through a total of 93 schemes.
The issue was subscribed 92.17 times. The QIB portion was subscribed 92.17 times, HNI portion was subscribed 112.51 times, Retail portion was subscribed 12.29 times and Employee reservation was subscribed 1.88 times. There were 35.70 lac applications. The cost of funding which has doubled in the present list of primary issuances from 6.5% to 13% is Rs 360 per share. Opportunism at its best or worst and each person trying to extract its pound of flesh.
Further with the deadline of RBI of 1st April 2022 on HNI borrowing of Rs 1 cr per individual looming large, it would be interesting to see whether the merchant banking community comes up with new alternatives for funding.
Full details of subscription category wise is given below: –
FSN E-commerce Subscription
Bucket Size | Shares Applied for | Times Oversubscribed | |
QIB | 14197599 | 1308613056 | 92.17 |
HNI | 7098798 | 798681132 | 112.51 |
Retail | 4732532 | 58182720 | 12.29 |
Employee | 250000 | 469920 | 1.88 |
Total | 26278929 | 2165946828 | 82.42 |