Honasa Consumer IPO Day 2: Issue Received Varied Investor Response with 29% Subscription

1 Nov 2023 , 12:23 PM

Honasa Consumer, the parent company of the well-known direct-to-consumer (DTC) brand Mamaearth, initiated its IPO on October 31, aiming to raise Rs 1701 crore. This includes a fresh issue of Rs 365 crore and an offer-for-sale from both promoters and existing shareholders.

As of day 2 at 12:15 PM, the response to the IPO has been varied across all investor segments. The retail portion has garnered a 48% subscription, while the non-institutional investor (NII) portion has received a 5% subscription, and the Qualified Institutional Buyer (QIB) portion has been subscribed to 16%.

A specific portion has been reserved for employees, who are eligible to acquire shares at a discounted rate of Rs 30 per share to the final IPO price.

During day 1, the subscription was at 12%, with the retail portion accounting for 34% of the shares booked.

The Gurugram-based beauty and personal care (BPC) company intends to allocate Rs 182 crore towards advertising expenses to augment brand awareness and visibility. Additionally, Rs 20.6 crore will be allocated for establishing new exclusive brand outlets (EBOs).

A portion of Rs 26 crore is earmarked for investment in its subsidiary, BBlunt, intended for setting up new salons. The remaining funds from the net fresh issue proceeds will be allocated for general corporate purposes and for potential unidentified inorganic acquisitions.