The IPO Honasa Consumer Limited, owners of famous Mamaearth outlets was subscribed 0.13 times or just 13 per cent at the end of Day 1 on Tuesday.
The ₹1,701-crore Initial Public Offering, at a price band of ₹308-324, received bids for 36.25 lakh shares against an offer 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 shares ) for for its employees, who will get a discount of ₹30 per share.
Employee quota was subscribed almost two times while QIBs and NIIs bid just 0.1 time and 0.03 time to their respective portions. Retail investors portion was subscribed 0.34 times.
The company on Monday raised d ₹765.20 crore by deciding to allot 2.36 crore equity shares to 49 anchor investors. The shares were allotted at ₹324 a share to anchor investors who included some of the 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; and dmestic investors ICICI Prudential, Aditya Birla Sun Life, Nippon, Axis, Canara Robeco, Invesco and MF of White Oak 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 added several more brands to its bouquet such as The Derma Co, Aqualogica, Ayuga, BBlunt, and Dr Sheth’s.