Shares of fashion e-commerce platform Nykaa opened at a 79.4% premium to their offer price on Wednesday, gaining a valuation of 954.37 billion rupees ($12.86 billion), in the latest listing by an Indian startup after food delivery firm Zomato.
Shares of FSN E-Commerce Ventures, the company which owns the Nykaa brand, opened at 2,018 rupees in pre-open trade, compared with the initial public offering (IPO) price of 1,125 rupees.
The company's offering last week drew bids worth $32.55 billion as it was oversubscribed by nearly 82 times, signalling strong investor demand for a startup that, unlike many others, has already achieved profitability.
The listing comes at a time when companies attempt to cash in on an Indian market that has scaled record highs on the back of a decline in COVID-19 cases, a reopening of the economy and ample liquidity.
The company, which functions in two broad segments, namely beauty and personal care and apparel & accessories, was incorporated in 2012 and swiftly became a popular name among Indian consumers.
With famous Indian celebrities such as Alia Bhatt and Katrina Kaif investing in the firm, Nykaa currently runs its online operations through mobile applications and websites along with 80 brick-and-mortar stores across the country, as of Aug. 31.