Shares of Honasa Consumer, the parent company of Mamaearth, continued their downward trend today, falling almost 5% due to profit booking. The stock has shed as much as 4.7% intra-day to its record low price of ₹307.
This follows the company's initial public offering (IPO) which was held from October 31 to November 2, during which the company raised a total of ₹1,701 crore. The IPO was subscribed 7.61 times on the final day with subscription rates varying across different investor categories.
Despite the overall moderate subscription, Honasa Consumer debuted on the stock market on Wednesday, November 8, with a flat listing at ₹330 per share. The stock closed marginally above both the IPO price and listing price, despite not building significantly on early gains.
On the first day of trading, the stock listed at ₹330 per share on NSE and ₹324 per share on BSE, closing at ₹337.30 and ₹337.15 per share respectively. The circuit filter for the IPO was set at 20% above and below the listing price for the day.
However, Swastika Investmart's Head of Wealth, Shivani Nyati, had suggested that the company is facing financial turbulence and operation-related risks which may have contributed to the stock's downward trend.
In the lead up to its IPO, Honasa Consumer had 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.
Overall, despite a promising start with a slight premium over its IPO issue price and listing price, Honasa Consumer has seen its shares decline in value since its market debut.
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