Mamaearth IPO Final Day: Issue subscribed 7.61 times, QIB portion booked 11.5 times

19,200-19,300 is the next resistance for Nifty

Mamaearth’s parent, Honasa Consumer IPO has been subscribed 7.61 times on November 2, the final day of bidding, receiving bids for 22 crore shares against the issue size of 2.89 crore shares. Retail investors bought 1.4 times, high net worth individuals (HNI) bought 4.02 times and qualified institutional buyers (QIB) picked 11.5 times 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 opened on October 31, has been fixed at Rs 308-324 per share.

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Employees, who have Rs 1 crore worth of shares reserved in the IPO, have bought 5 times the allotted quota. Employees will get the reserved shares at a discount of Rs 30 per share to the final issue price.

Through the IPO, Honasa Consumer aims to raise Rs 1,701 crore. The offer comprises a fresh issuance of shares worth Rs 365 crore 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.

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The Gurugram-based direct-to-customer (D2C) company will utilise the net proceeds for multiple purposes. The Rs 182 crore will be used to fund advertisement expenses and Rs 20.6 crore for setting up new exclusive brand outlets (EBOs). The company will also invest Rs 26 crore in its subsidiary, BBlunt to set up new salons. The remaining amount from the proceeds will be used for general corporate purposes and unidentified inorganic acquisitions.

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