Honasa Consumer’s IPO Subscribed 7.61 Times as Bidding Concludes
- ByStartupStory | November 3, 2023
The initial public offering (IPO) of Honasa Consumer, the parent company of Mamaearth, witnessed strong demand, with a subscription rate of 7.61 times the total shares on offer, according to data from BSE and NSE. Out of 2.89 crore shares available, the IPO received applications for 22 crore shares by the end of the bidding process on November 2.
The qualified institutional buyers (QIB) category led in terms of applications, with a remarkable 11.50 times oversubscription. Employees had their quota subscribed 4.88 times, and they will be eligible for reserved shares at a discount of ₹30 per share to the final issue price of Mamaearth. The non-institutional investors or high net-worth investors portion saw a subscription rate of 4.02 times, while the retail investors quota was subscribed 1.35 times.
Honasa Consumer aimed to raise ₹1,701 crore through its IPO, including a fresh share sale of ₹365 crore and an offer for sale of about 4.12 crore shares. The company is valued at ₹10,425 crore at the upper end of the price band.
Market analysts noted that shares of the company were commanding a slight premium of ₹10 in the unlisted market, where IPO shares can be unofficially traded until listing.
Honasa Consumer operates a portfolio of brands in the beauty and personal care segment, including Mamaearth, The Derma Co, Aqualogica, Dr. Sheth’s, and Ayuga. The company provides these products through its digital platform, serving over 500 cities in India. The IPO proceeds will be utilized for various purposes, including advertising expenses, capital expenditure for setting up new exclusive brand outlets, and investments in subsidiary BBlunt for opening new salons, among others.
The equity shares of Honasa Consumer are set to be listed on the BSE and the NSE. Kotak Mahindra Capital Company, Citigroup Global Markets India, JM Financial, and JP Morgan India are acting as book-running lead managers for the offer, while Kfin Technologies serves as the registrar.
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The strong demand for Honasa Consumer’s IPO reflects the market’s interest in the company’s prospects and the growing demand for its diverse range of beauty and personal care products.
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