Last day to apply in Mamaearth IPO: Issue fully subscribed, retail portion booked 78% so far

2 Nov 2023 , 12:55 PM

Honasa Consumer, the parent company of Mamaearth, has witnessed a subscription of 2.45 times on November 2, the final bidding day of its IPO. The company received bids for 7.09 crore shares against the issue size of 2.89 crore shares. Among the investor categories, retail investors bought 0.78 times, high net worth individuals (HNI) bought 0.51 times, and qualified institutional buyers (QIB) subscribed 3.98 times of the allotted quota.

The firm, owned by Varun Alagh and Ghazal Alag, earmarked 75% of the net issue size for QIBs, 15% for HNIs, and the remaining 10% for retail investors. The price band for the offering, which commenced on October 31, was set at Rs 308-324 per share.

Employees, with a Rs 1 crore share reservation in the IPO, oversubscribed their allotment by 4.00 times. They are entitled to the reserved shares at a discounted price of Rs 30 per share from the final issue price.

Honasa Consumer’s IPO intends to raise Rs 1,701 crore, which involves a fresh issuance of shares worth Rs 365 crore and an offer-for-sale (OFS) of 4.13 crore equity shares by several shareholders, including Sofina, Stellaris, Kunal Bahl, Rohit Kumar Bansal, and Shilpa Shetty Kundra.

The Gurugram-based direct-to-customer (D2C) company plans to allocate the net proceeds for various purposes. Specifically, Rs 182 crore will fund advertisement expenses, Rs 20.6 crore will go towards establishing new exclusive brand outlets (EBOs), and Rs 26 crore will be invested in its subsidiary, BBlunt, to establish new salons. The remaining proceeds will be used for general corporate purposes and potential unidentified inorganic acquisitions.