Nykaa’s blockbuster debut in the Indian stock market on November 10 helped celebrity investors Alia Bhatt and Katrina Kaif reap 10x gains in their investments.
The company's shares were listed at Rs 2,001 on BSE on Wednesday, a hefty premium of 77.87 per cent over its issue price of Rs 1,125. On NSE, the scrip was listed at Rs 2018, a premium of 79.38 per cent.
Nykaa's three-day share sale via initial public offering (IPO), which closed on November 1, saw huge demand for shares as the offer was subscribed 82 times. The IPO of FSN E-Commerce Ventures Limited received bids for 2,16,59,47,080 shares against 2,64,85,479 shares on offer and raised ₹ 5,352 crore through the issue.
Nykaa's IPO consisted of fresh issue of ₹ 630 crore and an offer for sale worth ₹ 4,722 crore. At the upper end of the price band one lot of 12 Nykaa shares in the IPO costed ₹ 13,500.
According to YourStory, Katrina Kaif had invested Rs 2.02 crores in 2018, while Alia Bhatt invested Rs 4.95 crore in the parent company of Nykaa, FSN E-Commerce Ventures, in 2020. After the beauty brands shares went up on Wednesday, the Katrina’s’ closing worth was Rs 22 crore, on the other hand, Alia gained Rs 54 crore.
Also read: “Dare to Dream”: Nykaa of entrepreneurship, Falguni Nayar offers advice
Interestingly, this is not the first time a celebrity has earned from a company’s IPO. Previously Amitabh Bachchan struck big with JustDial too. In 2013, after their IPO, JustDial afforded Bachchan a massive 46-fold increase in his investment amount – the biggest any celebrity investor has gained from an IPO till date.
Other Bollywood actors have also invested in startups. Deepika Padukone has multiple investments in e-mobility company BluSmart, edtech platform FrontRow, beauty commerce venture Purplle and small satellite manufacturer Bellatrix Aerospace.
Cricketers like Virat Kohli, Yuvraj Singh and Shikhar Dhawan have also invested in startups.