How to Apply for Nykaa IPO

Traders are always on the lookout for a lucrative upcoming IPO listing, and for the first time, SEBI has approved a beauty and wellness brand known as NYKAA to float an IPO. Are you excited about hearing this news and wish to understand how to apply for Nykaa IPO?

Nykaa applied for IPO in October after successfully running for the past 9 years. Falguni Nayar founded this e-commerce company only dedicated to fashion products. 

Interestingly, Nykaa’s online marketplace venture, FSN E-commerce Ltd, is entering IPO with a Fresh Issue of ₹630 crores and an OFS of 41.97 million equity shares. Nykaa IPO is all set to launch on 28th October and will be up for three days until 1st November.

Further, the estimated price band for this IPO is between ₹1,120-Rs 1,125 for the lot size of 13 shares per lot. 

Looking at its IPO Grey Market Premium value it is around ₹670 to date. Now let’s figure out how to fill the application to reap the benefit of listing gains. 

How to Apply for Nykaa IPO Online?

Life gets easier when you can just apply for an IPO online using a trading platform on your mobile or desktop. And, just like for any IPO, the application for Nykaa IPO too can be completed using the ASBA process.

To avoid any delay just be ready with the details like bank account number, PAN card, and a Demat Account number.

Oh! Don’t you have a Demat account? Well, don’t worry, you can open it right away.

 

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How to Apply for Nykaa IPO Using ASBA?

The SEBI-developed ASBA(Applications Supported by Blocked Amount) allows a trader to apply for an IPO hassle-free. You can apply for Nykaa IPO using trading platforms and then following the simple steps as enumerated below:

1. First, log on to your trading platform or to a net banking terminal.
2. Next, select the “IPO Application” option from the drop-down menu.
3. You will get directed to a terminal that shows various IPOs. Spot the Nykaa IPO and click on “APPLY”.
4. Next, you will see an order placing form. Here, you have to enter the bid price for the shares. If the platform you subscribe to offers more than one bidding, you can also avail of that feature. This multiple bidding can increase the chance of getting an allotment. 

To understand this step better, let’s see the example of how to apply for Nykaa IPO. 

Please note that the bidding amount gets blocked in your bank account till allotment. In case shares get allotted the corresponding amount will be debited, otherwise unblocked.      

       5. Click “Proceed”, and this will pop up a warning window to confirm your order. Verify all the details once and then click “Confirm”.
       6. Next, you will see a Terms and Conditions window where you can scroll to the “I Agree” button and click on it.
       7. With this, your bid for Nykaa IPO has been successfully placed.

For payment, different brokers provide you with different options. Some brokers give an option of net banking while some give you the seamless way of doing UPI transactions. 

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Nykaa IPO Application Form

If you don’t find yourself too comfortable operating anything online, if you aren’t really into the whole digital revolution, you should know that you can apply for Nykaa IPO offline. But how?

All you have got to do is, read carefully as we explain how to apply for Nykaa IPO offline:

1. Just two days before the IPO listing, download the ASBA e-form for the Nykaa IPO available at the NSE website to begin the offline process, or click here to get the form. 
2. Now, you have to fill up the details, like name, contact details, PAN number, DP ID, Bidding details, Bank/UPI details, and of course, the Signature of the applicant.
3. Take this form to the nearest branch of your stockbroker, submit it, and in return, you will receive an acknowledgment form. From here onwards, the broker will do the needful.

Please take into account that if your total payment amount crosses the 50,000 mark, you have to attach a copy of the PAN Card to the application.

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Nykaa IPO Date

It’s pertinent to know the date an IPO is about to be listed so that you aren’t late filling out the application form. Therefore, we recommend that you set a reminder, if you need, for the Nykaa IPO Date. As mentioned before, the Nykaa IPO date of listing is October 28th, 2021.

A quick look at the following table will help you remember all the important dates associated with Nykaa IPO:

Next, we will explain to you what the pricing of the Nykaa IPO is all about so that you get a head start for planning and subsequent bidding.

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Nykaa IPO Price

Since Nykaa IPO date is all set, hence it’s time for you to decide on your order size. And for that, you must take into consideration the following pricing details.

 

These details will also help you judge this IPO better. How? That is what we explain in the next section.

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Nykaa IPO GMP

When considering the price, let’s check the details of the GMP too in order to check that how the IPO is performing in the grey market.

 

Referring to the above details help you in understanding the worth of the IPO and to grab an idea of the listing gains you can make from this IPO.

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Is Nykaa IPO good?

A fundamental step before applying for a particular IPO is to check the prospects of the company. This step is vital in order to come to a decision and ensure that you don’t apply for an IPO that will yield you no substantial profit.

Take a look at this fundamental report data of Nykaa to judge if Nykaa IPO is any good:

In March 2020, Nykaa received an Rs.100 crores raise from Steadview Capital, but this wasn’t it. Again in May 2020, Steadview Capital, a London-based global tech investment company, further added Rs.67 crores.Of course, this table is self-evident and says a lot about the growth of the company. But there is some other relevant information to keep in mind.

This means that Steadview Capital saw some real potential in Nykaa.

But on the other hand, the OFS value is a bit too high, and some traders will look at that as a negative indicator.

No doubt that with the start of covid-era, Nykaa has done well, considering the overall e-commerce sector made good profits during this time. This indicates that the company has an excellent reputation in the market.

In short, Nykaa IPO has shown a mixed level of prospects and can be rated as an average IPO.

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Conclusion

At last, one can say that Nykaa IPO has potential for profits, but traders need to make a calculated decision keeping in mind the high-value OFS risk.

And if you have decided to bid on this IPO, you should have a Demat account because that is an absolute must. So don’t waste any further and open your Demat account right away.

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Not having a Demat account, open it online for FREE!