Honasa Consumer Ltd., the parent company of Mamaearth, saw its initial public offering (IPO) oversubscribed by 7.61 times on its closing day, November 2. The IPO attracted bids worth ₹7,130 crore ($857 million), significantly higher than the total size of ₹1,700 crore ($204 million).
The high demand was led by qualified institutional buyers (QIBs), who bid for 11.5 times their quota. Non-institutional investors and employees also showed strong interest, oversubscribing by four times and 4.87 times respectively. Retail investors subscribed 1.35 times their allocation.
The IPO consisted of a fresh issue worth ₹365 crore ($44 million) and an offer for sale of 41.25 million shares by founders Varun Alagh and Ghazal Alagh, and key investors including Sofina, Stellaris Venture Partners, Fireside Ventures, Snapdeal co-founders Kunal Bahl and Rohit Bansal, actor Shilpa Shetty Kundra, and Rishabh Mariwala from Sharrp Ventures. Notably, Evolvence India Fund and Peak XV Partners did not participate in the share sale.
The shares were offered at a price band of ₹308-324 per share. Ahead of the IPO, Honasa raised ₹765 crore ($92 million) from anchor investors such as Abu Dhabi Investment Authority, Fidelity, Goldman Sachs (NYSE:GS), Capital Group, and Norges Bank.
Mamaearth specializes in environmentally friendly and chemical-free skincare and haircare products. The funds raised from the IPO are expected to be allocated for advertisements worth ₹182 crore ($22 million), setting up exclusive brand outlets worth ₹20.6 crore ($2.5 million), investing ₹26 crore ($3.1 million) in subsidiary BBlunt, and other corporate purposes.
The company's shares are set to list on the stock exchange next week. The basis of allotment is scheduled for November 7, with refund initiation on November 8 and credit of shares to Demat accounts by November 9. The listing is expected to take place on November 10.
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