Nykaa IPO, should you hold or sell nykaa share after listing

What Investors should do with  Nykaa share after its IPO listing?

Nayka's IPO is going to be finally listed on 11th November, 2021. Investors & traders showed huge interest in Nykaa IPO and got subscribed more than 82 times. Company has raised nearly 2400 crore from anchor investors which was done by an offer for sale (OFS) of up to 41,972,660 equity shares by promoters or existing shareholders with the IPO price band range of 1085rs to 1125rs. The founder of the company is women entrepreneur and former investment banker Falguni Nayar. Company offers more than 4,000, personal care, beauty and fashion brands through online sale on  its company website, mobile app and 80-odd brick-and-mortar stores. Nykaa shares are getting premium of 640rs per share in the grey market on upper price band of Nykaa IPO which is 1125rs. It means that Nykaa IPO is expected to list around 1765rs per equity share but mind it grey market premium to any IPO will not consider as final listing price because it may increase or decrease on the time of listing or before.  Nykaa shares will list on Indian leading stock exchanges NSE and BSE on 11 November 2021. We had already given recommendation of subscription for nykaa IPO on our website before this issue was going to Open.  Now One question will definitely come in to the mind of the investors that what they should do after the listing of Nykaa IPO whether investors should hold or sell Nykaa IPO? Let us discuss this question in easy language.

Should you hold or sell Nykaa share after IPO listing?

We have discussed above little bit about the company products as well as founder of the Nkyaa Company. Nkyaa is an American brand and it was launched in India nearly 10 years back by former investment banker Falguni Nayar who has strong presence into the Indian stock market as well. Company is selling the cosmetics and grooming products. With the help of its website nykaa is selling its strong brands such as Nivea , Lakme , Nykaa Natural, OLAY , Lotus Pixi glow & many more. Company is looking to use IPO raised money to increase physical presence of company outlets in India. Out of 5351 crore raise IPO funds, Company management is looking to use more funds for opening new retail stores &  remaining amount  of funds will be used for repayment of debt as well brand promotion of company products. From this Motive of the company, It is clear that Nykaa Company is in full mood of expansion and reducing the company debit. It is a good sign for the company shareholders. Company has also some part of business comes from pet care and household supplies. In the Financial year FY 20, Company had reports loss of nearly 16 crore and But in the march end of FY 21, Company has reported Consolidated net profit of nearly 61 crore.  As discussed earlier Company will reduce its debt from the books, it means that It will bring down interest costs, and further open up its profitability sources. Company has strong management and growth outlook in the coming years. Fashion industry in India or in any other country will always show good demand. Covid impact on the sale already factored in to the last year results of the Nykaa Company. We are bullish on the Nkyaa share for the long term point of view. All these factors Convince us to say that Hold Nykaa Share after listing of its IPo into the Indian stock market.

Should you buy Nykaa stock after IPO listing?

Many unsuccessful Nykaa IPO bidders could not get allotment of the Nykaa shares. Now those investors are thinking whether they should buy Nykaa share or not? Even after expected bumper listing, it is better to buy Nykaa Share for the long term point of view. It is advisable for long term investors to buy Nykaa share after some cool off or profit booking. After the IPO listing share price may come down as a part of some profit booking. At that time new Investors may start accumulate Nykaa share as a long term investment point of view. As of now there is no Listed Peer of Nykaa into the India stock market. Even it will be difficult to give technical price target in Nykaa share because it is new lisiting but still we will recommend that Keep strict stop loss of 1680rs on the closing basis in the Nykaa share.

What is the long term price target of Nykaa share?

After analysis the growth outlook and company management remark on company growth, the long term price targets of Nykaa share will be 2200rs++ in the coming months or 1 year of investment time frame. Long term Investors may consider Nykaa share into their portfolio. 

Also read: Sapphire foods IPO, should you subscribe KFC and Pizza hut operator IPO

What is the best strategy for trading into Nykaa Share after lists IPO listing?

We will set up the stoploss & targets as per the grey market premium for Nykaa share. Traders & Investors, those got Nykaa shares allotment in IPO; we will suggest them to raise their stoploss to 1680rs or maximum 1650rs on closing basis.

New Traders & Investors also need to follow the strict stop loss of 1680rs of 1650rs rs on closing basis. Target will be 2200rs +

Note: In the worst situation, If Nykaa share does not list as per the grey market premium of 640rs per share then Investors should adjust their stop loss accordingly.

New recommendation on nykaa stock after listing:

Nykaa stock has given multiple returns as per our expectations. We had given target price of 2200rs+ in Nykaa stock. Nyka stock had made 52 weeks of high 2409.95rs. It was above our expectations. We hope that our website viewers had made multiple returns in our this recommendation too. It is advisable to keep your profit with you. We will update later if we think that new investor should again buy nykaa stock or not. At this time Book profit in Nykaa stock.

or risky investors and traders Keep strict stoploss of 2080rs on closing basis