Mamaearth parent Honasa Consumer files final prospectus, tentative listing on Nov 10
Despite a slow start on day one (shares subscribed by 13%), Honasa Consumer received a overwhelming response on day three, with the IPO subscribed 7.62 times.
Honasa Consumer, the parent company of, , and , among others, has filed its final prospectus ahead of its listing, which is tentatively set for November 10. Media reports suggest that the allotment of the shares will be done on November 7.
Founded by couple-entrepreneur Ghazal and Varun Alagh, Honasa is betting on the Indian beauty and personal care (BPC) market valued at $20 billion, and is expected to grow annually at 11%, to reach $33 billion by 2027.
"Advantages like agility, specificity, innovation, new-age focus, and online orientation are helping the Indian new-age pure-play BPC brands scale fast," Emkay Research noted.
According to data available with Indian stock exchanges, Honasa received an overwhelming response from institutional investors on Thursday, day three of its initial public offering (IPO), with bids of 22 crore shares as against an offer of 2.8 crore shares.
Honasa aims to raise Rs 1,701 crore, consisting of fresh issuance worth Rs 365 crore, and an offer for sale of another 4.13 crore. The company has set a price band of Rs 308 to Rs 324.
"We have built sufficient strength and capability to use Mamaearth's business principles in other brands," Co-founder Ghazal Alagh had told YourStory in an earlier conversation.
The IPO opened for subscription on October 31, and closed on November 2. Despite a slow start on day one (shares subscribed by 13%), the company received an overwhelming response on day three, with the IPO subscribed 7.62 times.
With qualified institutional investors leading at 11.5 times, non-institutional investors (HNIs) bid 4.20 times. Retail individual investors bid 1.35 times.
Earlier, on October 30, the company had raised Rs 765.2 crore from 49 investors—Abu Dhabi Investment Authority, Smallcap World Fund, Fidelity Funds, Goldman Sachs, Government Pension Fund Global, and Carmignac Portfolio, among others.
The previous prospectus stated that the company would be using parts of its proceeds towards strategic acquisition to expand its in-house brands' portfolio. The founders also noted that Honasa will continue acquiring brands through a consumer lens.
Edited by Megha Reddy