Mamaearth IPO closes with lukewarm response on day 1; issue subscribed 13%

Mamaearth IPO subscription status: Mamaearth IPO has been subscribed 13% on day 1. Mamaearth's parent Honasa Consumer IPO has opened for subscription today (Tuesday, October 31), and will close on Thursday, November 2. Mamaearth IPO set the price band for its issue at ₹308-324 per equity share of face value of ₹10 each.

Mamaearth IPO has reserved not less than 75% of the shares in the public issue for Qualified Institutional Buyers (QIB), not more than 15% for Non Institutional Investors (NII), and not more than 10% of the offer is reserved for Retail Investors. A discount of ₹30 per equity share is being offered to eligible employees bidding in the employee reserve portion.

Also Read: Mamaearth IPO: Check out 10 key risks before investing your money

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On day 1, Mamaearth IPO retail investors portion was subscribed 34%, NII portion was subscribed 3%, and Qualified Institutional Buyers (QIB) portion were booked 10%, and employee portion was subscribed 1.98 times.

Mamaearth IPO subscription status

 Mamaearth IPO has received bids for 36,17,256 shares against 2,88,99,514 shares on offer,  according to data from the BSE.

Mamaearth IPO retail investors' portion received bids for 17,74,450 shares against 52,48,272 shares on offer for this segment.

Mamaearth IPO's non-institutional investors' portion received bids for 2,32,300 shares against 78,72,409 on offer for this segment.

Mamaearth IPO's Qualified Institutional Buyers (QIBs) portion received bids for 15,43,254 shares against 1,57,44,820 shares on offer for this segment.

Mamaearth IPO's employee portion received bids for 67,252 shares against 34,013 on offer for this segment.

Also Read: Seven mutual funds via 19 schemes invest ₹253 crore in Mamaearth IPO; check details

Mamaearth IPO details

Mamaearth IPO consists of an offer for sale (OFS) of around 4.12 crore shares and a new share issuance of up to ₹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.

Also Read: Mamaearth IPO opens today: GMP, price band, review, here are 10 key things to know about the offer

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.

Also Read: Mamaearth IPO: Company reveals the reason for reducing issue size

Mamaearth IPO GMP today

Mamaearth IPO GMP today or grey market premium is +7, similar to the previous three session. This indicates Mamaearth share price were trading at a premium of ₹7 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 ₹331 apiece, which is 2.16% higher than the IPO price of ₹324.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Also Read: Mamaearth IPO: Should you subscribe? Here's what top 5 brokerages say on Honasa Consumer's book build issue

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