The initial public offering (IPO) of Honasa Consumer, the parent company of popular brands like Mamaearth, The Derma Co, and Aqualogica, has witnessed a 13% subscription rate on its first day of bidding. Honasa Consumer made available a total of 2,88,99,514 shares, and on the inaugural day, received bids for 36,12,518 shares. Notably, retail investors secured 34% of the 52.4 lakh shares reserved for them, as per data from stock exchanges.
High net-worth investors (HNIs) or non-institutional investors displayed strong interest, bidding for 2.31 lakh shares out of the 78.72 lakh shares allocated to them, accounting for nearly 3% of the reserved portion. Among HNIs, those who bid between Rs 2-10 lakh contributed 1.12 lakh shares from the 26.24 lakh shares designated for them.
Employees of Honasa Consumer exhibited notable enthusiasm, subscribing to 1.98 times the reserved quota of 34,013 shares.
For qualified institutional buyers, 10% of the shares set aside were subscribed, with bids received for 15.43 lakh shares out of the 1.57 crore shares allocated to this category.
The IPO’s price band is set between Rs 308 and Rs 324. The pre-IPO placement offer is scheduled to close on November 2. Mamaearth’s parent company unveiled its red herring prospectus last week, outlining plans to raise Rs 365 crore through a fresh issue of shares and an offer for sale (OFS) of approximately 4.12 crore shares.
On October 30, it successfully raised Rs 765.2 crore from 49 investors at a price of Rs 324 per share, with a face value of Rs 10. Distinguished investors like Fidelity Funds, Abu Dhabi Investment Authority, Smallcap World Fund, Government Pension Fund Global, Carmignac Portfolio, and Goldman Sachs participated in the funding round.
Exciting news! We’re now on WhatsApp Channels too. Subscribe today by clicking the link and stay updated with the latest insights in the startup ecosystem! Click here!
Ghazal Alagh, Co-founder of Honasa Consumer, expressed the company’s intention to apply the successful Mamaearth approach to its other brands. She noted that they have built substantial strength and capabilities to implement Mamaearth’s business principles across their brand portfolio. The prospectus filed last week outlined that Honasa intends to use a portion of the proceeds for strategic acquisitions to expand its house-of-brands portfolio. Alagh emphasized the company’s commitment to evaluating potential acquisitions from a consumer perspective.