Mamaearth IPO Listing Sees Positive Start

Mamaearth IPO Listing Sees Positive Start

VoM News Desk | November 7, 2023 | 12:38 PM IST | Breaking News | Follow on Google News

Mamaearth IPO Listing Sees Positive Start

Mamaearth IPO Listing Sees Positive Start

Mamaearth’s parent company, Honasa Consumer, made a notable entry onto the stock exchanges, with its shares opening on the National Stock Exchange (NSE) at a 1.85% premium of ₹330 per share, slightly higher than the issue price of ₹324. On the Bombay Stock Exchange (BSE), shares were listed at the issue price of ₹324.

IPO Details and Market Response

The initial public offering (IPO) for Mamaearth had a price band fixed at ₹308-324 per equity share with a face value of ₹10 each. The offering included a minimum lot size of 46 equity shares and subsequent multiples of 46. The IPO opened on October 31 and closed on November 2, experiencing a lukewarm start but gaining momentum by the last day. It was fully subscribed on its final day, with the retail investor segment subscribing 1.35 times, non-institutional investors (NII) at 4.02 times, qualified institutional buyers (QIB) at 11.50 times, and the employee segment at 4.87 times.

Use of Proceeds and Stakeholder Sales

The IPO comprised an offer for sale (OFS) of approximately 4.12 crore shares and a fresh issue of shares amounting to ₹365 crore. Significant stakeholders, including founders Varun Alagh and Ghazal Alagh, as well as celebrity Shilpa Shetty Kundra and several venture funds, partook in the OFS. The funds raised are earmarked for various objectives, including brand promotion, capital for new exclusive brand outlets (EBOs), financing new salons under the subsidiary BBlunt, and potential inorganic acquisitions.

Anchor Investors and GMP Insights

Before the public listing, Honasa Consumer attracted ₹765.20 crore from anchor investors. Prominent mutual funds invested ₹253 crore, acquiring a 33.1% share of the anchor portion. The IPO’s grey market premium (GMP) stood at +24, indicating a potential listing price of ₹348 per share, which would be a 7.41% increase from the IPO price. This grey market activity suggested a robust listing, with the GMP fluctuating between ₹0 and ₹47 in the sessions leading up to the listing.

VoM News Desk

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