The IPO Honasa Consumer Limited will close today for the public. The initial public offering of owners of famous Mamaearth outlets was subscribed 0.70 times or just 70 per cent at the end of Day 2 on Wednesday even as retail investors and non-institutions remained on the sidelines.

The ₹1,701-crore IPO, at a price band of ₹308-324, received bids for 2.01 crore shares against an offer of about 2.9 crore shares. The minimum bids can be made for 46 equity shares and in multiples of 46 shares thereafter.

The offering comprises a fresh issue of equity shares amounting to ₹365 crore, alongside an Offer for Sale (OFS) of up to 4.125 crore equity shares by various stakeholders, including promoters, founders, and investors. Co-founders and promoters -- Varun Alagh and Ghazal Alagh -- and investors such as Fireside Ventures Fund, Sofina, Stellaris, Kunal Bahl, Rohit Kumar Bansal, Rishabh Harsh Mariwala, the son of Harsh Mariwala (Founder and Chairman of Marico), and Bollywood actor Shilpa Shetty Kundra are selling shares in the OFS. 

Honasa Consumer has reserved 75 per cent of the net issue for qualified institutional buyers (QIB), 15 per cent for non-institutional investors, and the remaining 10 per cent for retail investors. The offer also has a quota (₹1 crore worth of shares) for its employees, who will get a discount of ₹30 per share. 

Employee quota was subscribed over three times, while QIBs subscribed 1.02 times. However, the NII’s quota saw just 0.09 times, and the retail investors’ portion was subscribed 0.62 times.

The company on Monday raised ₹765.20 crore by deciding to allot 2.36 crore equity shares to 49 anchor investors. The shares were allotted at ₹324 per share to anchor investors, including some prominent FPIs such as Capital Group (through Smallcap World Fund Inc), Fidelity International Ltd, Norges Bank, Abu Dhabi Investment Authority, First Sentier (First State Investments), White Oak, Franklin Templeton, Kotak, DSP, Carmigniac Gestion, Loomis Sayles, Matthews, Pictet, and Hornbill. Domestic investors include ICICI Prudential, Aditya Birla Sun Life, Nippon, Axis, Canara Robeco, Invesco, and White Oak MF. Insurance companies such as SBI Life Insurance, ICICI Life Insurance, Birla Life Insurance, Max Life Insurance, Bajaj Allianz Life Insurance, and Bharti AXA Life Insurance were also part of the allotment. 

Proceeds from the fresh issue will be used for advertising expenses to step up awareness and brand visibility, establishing new exclusive brand outlets, investment in its subsidiary BBlunt for setting up new salons, general corporate purposes, and inorganic acquisitions.

The Gurugram-based beauty and personal care company started with the launch of Mamaearth, and over the years, added several more brands to its bouquet such as The Derma Co, Aqualogica, Ayuga, BBlunt, and Dr Sheth’s.

Related Topics
comment COMMENT NOW