Mamaearth parent’s IPO subscribed 13% on day 1; retail investors buy 34% of reserved shares

The initial public offering (IPO) of Honasa Consumer—the parent company of Mamaearth, The Derma Co., and Aqualogica, among others—saw its shares being subscribed by 13% on the first day of bidding.

Honasa Consumer has offered a total of 2,88,99,514 shares and day one saw bids totalling 36,12,518. 

Retail investors booked 34% of the 52.4 lakh shares reserved for them, according to data available with the bourses.

Non-institutional investors or high net-worth investors (HNI) put in bids for 2.31 lakh shares against 78.72 lakh shares assigned to them, making up for nearly 3% of the reserved portion. HNIs, whose bid amounts were between Rs 2-10 lakh, bid for 1.12 lakh shares out of 26.24 lakh shares allocated to them.

Honasa Consumer’s employees subscribed 1.98 times the reserved quota of 34,013 shares.

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The shares kept aside for qualified institutional buyers were subscribed 10%, with 15.43 lakh shares being bid out of 1.57 crore shares allocated to them.

The price band for the offer is set between Rs 308 and Rs 324. The pre-IPO placement offer will close on November 2.

Mamaearth’s parent company floated its red herring prospectus last week, outlining its roadmap to raise Rs 365 crore in a fresh issue of shares and offer for sale (OFS) of about 4.12 crore shares.

It raised Rs 765.2 crore from 49 investors on October 30 at a price of Rs 324 per share with a face value of Rs 10. Investors including Fidelity Funds, Abu Dhabi Investment Authority, Smallcap World Fund, Government Pension Fund Global, Carmignac Portfolio, and Goldman Sachs participated in the round.

In an earlier interview with YourStory, Co-founder Ghazal Alagh had said that Honasa Consumer intends to replicate its Mamaearth playbook to the other brands. “We have built sufficient strength and capability to use Mamaearth’s business principles in other brands,” she had said.

According to the prospectus filed last week, Honasa will use some part of the proceeds towards strategic acquisitions to expand its house-of-brands portfolio. Co-founder and Chief Innovation Officer Alagh had noted that the company will continue to look at acquiring brands through a consumer lens.