The initial public offering (IPO) of Honasa Consumer—the parent company of Mamaearth, The Derma Co, and Aqualogica, among others—saw its shares subscribed by 70% on the second day of bidding.
Honasa Consumer offered 2,88,99,514 shares, and day two saw bids totalling 2,01,54,440 shares, as per data available with stock exchanges. Retail investors booked 62% of the 52.4 lakh shares reserved for them.
Non-institutional investors or high net-worth investors (HNI) put in bids for 6.89 lakh shares against 78.72 lakh shares kept aside for them, making up for nearly 9% of the reserved portion. HNIs, whose bid amounts were between Rs 2 and Rs 10 lakh, bid for 2.58 lakh shares of the 26.24 lakh shares allocated for them.
Honasa Consumer’s employees, who have shares reserved in the IPO, subscribed 3.19 times the reserved quota of 34,013 shares on the second day of the pre-placement offer.
The shares kept aside for qualified institutional buyers were subscribed 1.02 times, with 1.61 crore shares bid out of 1.57 crore shares allocated.
The price band for the offer is set between Rs 308 and Rs 324. The pre-IPO placement offer will close on November 2.
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Mamaearth’s parent company floated its red herring prospectus (RHP) last week, outlining its roadmap to raise Rs 365 crore in a fresh issue of shares and offer for sale (OFS) of about 4.12 crore shares.
It raised Rs 765.2 crore from 49 investors on October 30 for Rs 324 per share, with a face value of Rs 10. Investors, including Fidelity Funds, Abu Dhabi Investment Authority, Smallcap World Fund, Government Pension Fund Global, Carmignac Portfolio, and Goldman Sachs, also participated in the round.
In an interview with YourStory, Co-founder Ghazal Alagh said the company intends to replicate its Mamaearth playbook for its other brands mainly because it has built sufficient strength and capability to use its business principles.
Edited by Suman Singh
