Mamaearth IPO Subscribed 12% On Day 1

Honasa Consumer, the parent of Mamaearth, launched its initial public offering on Oct. 31. The three-day issue, priced in the range of Rs 308–324 per share, will conclude on Nov. 2.

The public issue is expected to fetch over Rs 1,700 crore at the upper end of the price band. The IPO consists of a fresh issue of equity shares worth Rs 365 crore and an offer-for-sale component of Rs 4.12 crore equity shares by promoters, investors, and other selling shareholders.

The company has focused on capitalising on the beauty and personal care segment in the FMCG space.

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 Ltd., the parent of FMCG brands like Mamaearth and The Derma Co., has raised Rs 765.2 crore from anchor investors ahead of its initial public offering.

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.

Seven domestic mutual funds have applied through a total of 19 schemes, the company said in an exchange filing. They have collectively netted 33.14% of the anchor portion of Rs 253 crore.

The IPO has been subscribed 0.12 times, or 12%, as of 5 p.m. on Tuesday.

• Institutional investors: 0.10 times or 10%

• Non-institutional investors: 0.03 times or 3%

• Retail investors: 0.34 times or 34%

• Employee Reserved: 1.97 times or 97%