Mamaearth IPO Day 2: Issue subscribed 70%, QIB portion booked 102%

Honasa Consumer aims to raise Rs 1,701 crore via IPO

Mamaearth’s parent, Honasa Consumer IPO was subscribed 70% on November 1, receiving bids for 2 crore shares against the issue size of 2.89 crore shares. Retail investors bought 61%, high net worth individuals (HNI) bought 9% and qualified institutional buyers (QIB) picked 102% of the allotted quota.

Varun Alagh and Ghazal Alag owned firm has reserved 75 percent of the net issue size for QIBs, 15 percent for HNIs and the remaining 10 percent for retail investors. The price band for the offer, which will close on November 2, has been fixed at Rs 308-324 per share.

Also Read: Honasa Consumer IPO: Should you subscribe to Mamaearth’s Rs 1,701 crore issue?

Employees, who have Rs 1 crore worth of shares reserved in the IPO, have bought 2.73 times the allotted quota. Employees will get the reserved shares at a discount of Rs 30 per share to the final issue price.

Honasa Consumer aims to raise Rs 1,701 crore via IPO. The offer comprises a fresh issuance of shares worth Rs 365 crore by the company, and an offer-for-sale (OFS) of 4.13 crore equity shares by a few shareholders including Sofina, Stellaris, Kunal Bahl, Rohit Kumar Bansal, and Shilpa Shetty Kundra.

The Gurugram-based direct-to-customer (D2C) company will utilize the net process for multiple purposes. The Rs 182 crore will be used to fund advertisement expenses towards enhancing the awareness and visibility of the brands, and Rs 20.6 crore for setting up new exclusive brand outlets (EBOs). Honasa Consumer will also invest Rs 26 crore in its subsidiary, BBlunt to set up new salons. The remaining part of the proceeds will be used for general corporate purposes and unidentified inorganic acquisitions.