Honasa Consumer IPO Opens: Subscription Slow in Initial Hours

31 Oct 2023 , 12:45 PM

The IPO launch of Honasa Consumer, the parent company behind the Mamaearth brand, commenced today, aiming to secure Rs 1,701 crore through its share sale. Click here to subscribe the IPO.

Within the initial two hours, the IPO witnessed a mere 4% subscription rate. Notably, the Retail segment received a 21% subscription, while the non-institutional investors’ portion gathered 1% in bids. Meanwhile, the reserved section for employees achieved full subscription, standing at 1.41 times.

Ahead of the issue’s launch on Monday, Honasa Consumer garnered a significant investment of Rs 765 crore from anchor investors.

The IPO makeup consists of a fresh equity issue of Rs 365 crore and an offer for sale of about 4.12 crore shares. Founders Varun Alagh and Ghazal Alagh, alongside investors Kunal Bahl, Shilpa Shetty, and Rishabh Mariwala, are set to divest a portion of their stakes through the offer for sale (OFS).

Investors have the opportunity to bid for a minimum of 46 shares in one lot and in subsequent multiples. The allocation structure designates 75% for qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% for retail investors.

Additionally, the company has offered its employees a Rs 30 discount per share, along with a reservation of equity shares valued up to Rs 10 crore.