Final Day of Mamaearth IPO: Issue Subscribed 7.61 times, with 11.5 times bookings for the QIB Component

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On November 2, the last day of bidding, the parent company of Mamaearth, Honasa Consumer IPO, received 7.61 subscriptions, amounting to 22 crore shares against the 2.89 crore share issue size. The allocated quota was purchased 1.35 times by retail investors, 4.02 times by high net worth individuals (HNI), and 11.5 times by qualified institutional buyers (QIB).

The company, which is controlled by Varun Alagh and Ghazal Alag, has set aside 75% of the net issue size for QIBs, 15% for HNIs, and the remaining 10% for retail investors. The offer’s price range, which was announced on October 31, is set at Rs 308–324 per share.

Workers who reserved shares in the IPO valued Rs 1 crore have purchased 3.72 times the allotment. The reserved shares would be given to employees at a discount of Rs 30 per share above the issuance price.

Honasa Consumer wants to raise Rs 1,701 crore through the IPO. A few shareholders, including Sofina, Stellaris, Kunal Bahl, Rohit Kumar Bansal, and Shilpa Shetty Kundra, have put up an offer-for-sale (OFS) of 4.13 crore equity shares in addition to a fresh issuance of shares valued at Rs 365 crore.

The direct-to-customer (D2C) business situated in Gurugram plans to use the net funds for a number of initiatives. The funds allocated are Rs 182 crore for advertising and Rs 20.6 crore for the establishment of new exclusive brand outlets (EBOs). In order to open more salons, the business will also invest Rs 26 crore in BBlunt, a subsidiary. Unidentified inorganic acquisitions and general corporate objectives will be the uses of the remaining cash.

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