Mamaearth Shares Debut At Nearly 2% Premium Over IPO Price

Shares of Honasa Consumer Ltd.—the parent of FMCG brands like Mamaearth—debuted at Rs 330 apiece on the National Stock Exchange, a premium of 1.85% over its IPO price of Rs 324 apiece.

On the BSE, the stock debuted flat at Rs 324 apiece.

The shares ended at a premium of 4.06% over the IPO price and ened at Rs 337.15 apiece.

Honasa Consumer was subscribed to 7.61 times on its final day, led by institutional investors (11.50 times), a portion reserved for employees (4.87 times), non-institutional investors (4.02 times), and retail investors (1.35 times). The IPO was subscribed 12% on day 1 and 70% on day 2.

Honasa Consumer intends to use the proceeds largely towards advertising expenses to enhance brand visibility. It also plans to deploy funds for capital expenditure to set up new Exclusive Brand Outlets and invest in its subsidiary, BBlunt, to set up new salons.

Honasa Consumer has raised Rs 765.2 crore from anchor investors ahead of its IPO. The beauty and personal care company allotted 2.36 crore shares at Rs 324 apiece to 49 anchor investors.

The marquee investors include Capital Group (through Smallcap World Fund Inc., which was allocated the highest anchor allocation of 8.76%), Fidelity International, Norges Bank, Abu Dhabi Investment Authority, First Sentier (First State Investments), White Oak, Franklin Templeton, Kotak, DSP, Carmigniac Gestion, Loomis Sayles, Matthews, Pictet and Hornbill, and Goldman Sachs, among others.