Honasa Consumer Ltd., the parent of FMCG brands like Mamaearth and the Derma Co., 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 IPO was subscribed 12% on day 1 and 70% on day 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.
IPO Details
Issue Opens: Oct. 31
Issue Closes: Nov. 2
Fresh Issue Size: Rs 365 crore
Shares for Offer For Sale: 4.12 crore shares
Total Issue Size: Rs 1,701 crore
Price Band: Rs 308–324 per share
Lot Size: 46 Shares
Face Value: Rs 10 per share
Listing: BSE and NSE
The company has not undertaken any pre-IPO placement.
At the upper price band, the company has an implied market cap of Rs 10,424 crore.
Anchor Investors
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.
Subscription Status: Day 3
The IPO has been subscribed 7.61 times as of 5:12 p.m. on Thursday.
Institutional investors: 11.50 times
Non-institutional investors: 4.02 times
Retail investors: 1.35 times
Employee Reserved: 4.87 times
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