Honasa Consumer IPO listing: Mamaearth share price debuts at a mere 2% premium at ₹330 on NSE
Mamaearth's parent Honasa Consumer share price listed at ₹330 per share on NSE, 1.85% higher than the issue price of ₹324.
Mamaearth IPO listing: Mamaearth's parent Honasa Consumer share price was listed on the bourses at a premium on Tuesday. On NSE, Mamaearth share price was listed at ₹330 per share, 1.85% higher than the issue price of ₹324, and on the BSE, Mamaearth share price today was listed at par with the issue price at ₹324.
“We are living a dream, which we never thought of until 2.5 years ago,” said Mamaearth founder Ghazal Alagh, ahead of Mamaearth IPO's D-Steet debut, as reported by moneycontrol.
The Mamaearth IPO price band was set at ₹308-324 per equity share of a face value of ₹10 each, and the lot size is 46 equity shares and in multiples of 46 equity shares thereafter.
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Mamaearth IPO opened for subscription on Tuesday, October 31, and closed on Thursday, November 2. Mamaearth IPO was completely booked on the last day, having struggled for the previous two days. Within the first hour of opening, the employee and qualified institutional buyer (QIB) portions were oversubscribed. In the latter part of the day, the retail portion was gradually booked fully.
Mamaearth IPO has been subscribed 7.61 times on day 3. Mamaearth IPO retail investors portion was subscribed 1.35 times, NII portion was subscribed 4.02 times, and Qualified Institutional Buyers (QIB) portion were booked 11.50 times, and employee portion was subscribed 4.87 times.
On the day 2, Mamaearth IPO has been subscribed 70% on day 2, and the issue was subscribed 13% on day 1.
Mamaearth IPO details
The Mamaearth IPO consists of an offer for sale (OFS) of around 4.12 crore shares and a fresh issue of shares worth ₹365 crore. The IPO will see the sale of 3,186,300 shares by Honasa promoter Varun Alagh and up to 100,000 shares by his wife Ghazal Alagh. A number of other shareholders, including Kunal Bahl, Shilpa Shetty Kundra, Rishabh Harsh Mariwala, Fireside Ventures Fund, Sofina, Stellaris, and Rohit Kumar Bansal, will be selling their stakes in the OFS.
The company intends to use the net proceeds to finance the following goals: advertising costs to raise the company's brands' exposure and awareness; the amount of capital that the company will need to build up new EBOs; financial support for the establishment of new salons by the company's subsidiary, Bhabani Blunt Hairdressing Private Limited (BBlunt); general corporate objectives; and an unidentified inorganic acquisition.
The book-running lead managers of the Honasa Consumer IPO are Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, JM Financial Limited, and J.P. Morgan India Private Limited. The registrar of the offering is Kfin Technologies Limited.
Honasa Consumer IPO raised a capital of ₹765.20 crore from anchor investors on Monday, October 30. Seven prominent mutual funds invested ₹253 crore in the Mamaearth IPO, receiving 33.1% of the anchor allocation.
Honasa Consumer IPO GMP today
The Mamaearth IPO GMP today or grey market premium is +24. This indicates the Mamaearth share price was trading at a premium of ₹24 in the grey market on Tuesday, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Mamaearth share price was indicated at ₹348 apiece, which is 7.41% higher than the IPO price of ₹324.
Based on last 16 sessions' grey market activities, the current GMP ( ₹24) indicated strong listing. The lowest GMP is ₹0, while the highest GMP is ₹47, as per analysts of investorgain.com.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
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