Mamaearth Shares Flat at Market Debut at premium of 1.85% on NSE

7 Nov 2023 , 09:55 AM

The stocks of Honasa Consumer’s subsidiary, Mamaearth, entered the market flatly, listing at Rs 324 on BSE at par and at Rs 330 on NSE, exhibiting a 1.85% premium over the issue price.

The Mamaearth IPO endured market volatility, receiving an overwhelming response from qualified institutional bidders (QIB) who subscribed at 11.5 times the allotted quota. In contrast, retail investors demonstrated cautious participation, subscribing at 1.4 times the offered shares.

Through the IPO, the Varun Alagh and Ghazal Alag-owned firm successfully raised Rs 1,701 crore. The offer consisted of a fresh issuance of shares valued at Rs 365 crore and an offer-for-sale of 4.13 crore equity shares by promoters and investors. The price band for the offer was set at Rs 308-324 per share during the offering period, which spanned from October 31 to November 2.

In the fiscal year ending March 2023, the company reported a net loss of Rs 150.9 crore, primarily influenced by an impairment loss on goodwill and other intangible assets. The firm witnessed a significant decline in volume growth, dropping to 68.23% in FY23 from 143.3% in FY22 and 298.42% in FY21. Nonetheless, revenue from operations showcased a commendable Compound Annual Growth Rate (CAGR) of 80.14% over the period from FY21 to FY23.

Honasa Consumer asserts itself as the leading digital-first beauty and personal care company in India, evidenced by its revenue from operations in the fiscal year FY23. Their Mamaearth brand, established in 2016, has swiftly emerged as one of India’s fastest-growing Beauty and Personal Care (BPC) brands, achieving an annual revenue milestone of Rs 1,000 crore within a mere six years.