Mamaearth’s share price for its IPO listing on the NSE started at a slightly higher value of ₹330, which is only 2% more than the initial price.
2 min read 11/07/2023, 11:50 PM IST
Mamaearth’s company, Honasa Consumer, had its shares listed as a top-quality investment in the IPO. On the National Stock Exchange (NSE), the starting price of Mamaearth’s shares was ₹330 per share. This price was 1. 85% higher than the original price of ₹324. However, on the Bombay Stock Exchange, Mamaearth’s share price started at the same price as the issue price, which was ₹324 per share.
The founder of Mamaearth, Ghazal Alagh, said in an interview with Money control that they are very excited because they are living a dream that they didn’t even think about until 2. 5 years ago The IPO for Mamaearth had a price range of ₹308-324 per share. Each share had a face value of ₹10. The IPO had a minimum number of 46 shares, and after that, you could buy more shares in multiples of 46.
The time when people could sign up for Mamaearth’s IPO started on Tuesday, October 31, and ended on Thursday, November 2. The IPO had some difficulties at the beginning but got enough people interested in it by the end. In the beginning, there were too many people interested in both the employee and qualified institutional buyer (QIB) sections. However, more people gradually signed up for the retail section as the day went on.
By the time the subscription period ended, Mamaearth’s IPO was more than 7 times oversubscribed. The amount of the investment offered to regular people was subscribed 1.35 times, the amount offered to investors who are not institutions was subscribed 402 times, and the amount offered to professional investors was subscribed 11.50 times Furthermore, the number of employees who subscribed increased by 4.87 times.
On the second day of people signing up for the IPO, 70% of the available spots were taken. On the first day, only 13% of the spots were taken.
The Mamaearth IPO has two parts; selling about 4. 12 crore shares and issuing new shares worth ₹365 crore. In the OFS, Varun Alagh, who started Honasa, wants to sell 3,186,300 shares. His wife, Ghazal Alagh, might sell up to 100,000 shares. Some other people and investment groups like Kunal Bahl, Shilpa Shetty Kundra, Rishabh Harsh Mariwala, and Fireside Ventures Fund, Sofina, Stellaris, and Rohit Kumar Bansal will also sell their shares through the OFS.
The company plans to use the money it earns for different things. They want to spend some of it on advertising to make more people aware of their brand. They also need money to open more stores for their brand and help their subsidiary start new hair salons. The company also wants to use the money for regular business needs and to possibly buy other companies.
The main companies in charge of managing the Honasa Consumer IPO are Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, JM Financial Limited, and J. P Morgan India Private Limited. Morgan India Private Limited is a company in India. Kfin Technologies Limited is the company in charge of managing the offering.
Honasa Consumer collected ₹765. 20 crore from anchor investors on Monday, October 30 before its IPO launch. Seven well-known mutual funds invested ₹253 crore in the Mamaearth IPO, obtaining a 33. 1% share of the anchor allocation.
