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Shares of Honasa Consumer that operates Mamaearth outlets will be listed at the bourses today. The issue has been priced at Rs 324, at the upper end of the price band of Rs 308-324. Shares of Mamaearth IPO are trading at a premium of Rs 30 in the grey market.
The IPO valuation created a lot of noise in social media.
However, despite that, the offerg received a strong response and was subscribed 7.61 times
The ₹1,701-crore issue received bids for 22 crore shares, against an offer of about 2.9 crore shares. Retail investors and non-institutions, who remained on the sidelines during the first two days, participated on the last day. The quota for retail investors was subscribed 1.35 times, and that for non-institutions 4.02 times.
Mamaearth parent Honasa Consumer IPO: Should you subscribe?
The IPO comprised a fresh issue of equity shares amounting to ₹365 crore and an Offer-for-Sale of 4.125 crore shares by promoters, founders, and investors.
Leading the subscription pack were qualified institutional buyers, whose portion was subscribed 11.50 times, followed by employees (4.88 times), who were offered a discount of ₹30 a share.
As part of the IPO, the company raised Rs 765.20 crore from anchor investors, including 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.
Among the domestic investors were ICICI Prudential, Aditya Birla Sun Life, Nippon, Axis, Canara Robeco, Invesco, and MF of White Oak MF, besides 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.
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 acquisition.
The Gurugram-based beauty and personal care company started with the launch of Mamaearth, and over the years has added more brands to its bouquet such as The Derma Co, Aqualogica, Ayuga, BBlunt, and Dr Sheth’s.
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