Mamaearth IPO: Honasa Consumer Limited Begins Initial Public Offering (IPO) with Investors Eyeing Subscriptions
The company that created the well-known brand Mamaearth, Honasa Consumer Limited, welcomed the general public to join it for its Initial Public Offering (IPO) on Tuesday. Until November 2, investors can still subscribe to the initial public offering (IPO).
Given the unstable state of the market, many investors are debating whether or not to join the IPO as soon as it opened for membership today. Analyst opinions vary, particularly in light of the company’s comparatively high valuation.
The IPO has set a price range of ₹308–₹324 per share, meaning that at the upper end, the valuation would be roughly ₹10,500 crore.
Is it Better to Subscribe or Not?
Although Honasa is a relatively young company recognized for its flagship brand, Mamaearth, Shivani Nyati of Swastika Investmart noted that the company’s financial performance has been patchy. It has declared losses in recent fiscal years, and the auxiliary businesses it has purchased have also experienced losses. The company also lacks patents on its product formulations and depends on outside manufacturers to manufacture its goods instead of manufacturing them themselves. Nyati cautioned investors thinking about purchasing an IPO subscription.
The Economic Times was informed by Profitmart Securities’ Avinash Gorakhshakar that long-term investors who are considering the company’s growth potential might think about participating in the IPO. He did point out, though, that because of the higher valuation, short-term investors might not receive enough listing gains.
A ‘Avoid’ rating and an assertion that the IPO pricing is aggressive were also made by Stocksbox.
Regarding the IPO
The IPO consists of an offer for sale (OFS) component with roughly 4.12 crore shares and a new equity issue of ₹365 crore. Through the offer, investors including Kunal Bahl, Shilpa Shetty, and Rishabh Mariwala, as well as founders Varun and Ghazal Alagh, will partially divest their stakes.
The company’s promoters and investors will sell about 4.13 crore equity shares in addition to a ₹365 crore primary share offer. The company wants to use the public offering to raise ₹1,701 crore.
A lot of at least 46 shares is available for bidding, and after that, multiples of 46 shares. The investment cap for individual retail investors is ₹14,904 for a minimum of 46 shares and ₹1,93,752 for 598 equity shares.
Ten percent goes toward retail investors, fifteen percent goes toward non-institutional investors, and seventy-five percent is set aside for qualified institutional buyers (QIBs).
Additionally, up to ₹10 crore worth of equity shares will be allocated, and employees of the company will receive a discount of ₹30 per share.
The Mamaearth IPO, which was conducted in the midst of erratic market conditions, has the potential to significantly influence future unicorn IPO trends.
A new issue of up to ₹365 crore equity shares and an offer for sale (OFS) component of about 4.12 crore shares make up the startup’s initial public offering (IPO).
Mamaearth, which was founded in 2016 by Varun and Ghazal Alagh, consists of the brands Equilógica, The Derma Co., and Ayugaa. They also have a part in BeBulb and Dr. Sheth’s.
Even though the Mamaearth IPO’s future is still unknown, particularly in the short term, it might be a significant and precedent-setting event for all unicorn IPOs.
The IPO for Mamaearth is expected to end on November 2. With a price range of ₹308–₹324 per share, the company hopes to raise about $1.2 billion from the offering.
In order to raise a total of ₹765.2 crore, Mamaearth distributed 2.36 crore equity shares to anchor investors on Monday.
A new issue of up to ₹365 crore equity shares and an offer for sale (OFS) component of about 4.12 crore shares are included in this startup’s initial public offering (IPO).
The Mamaearth brand portfolio, which was founded in 2016 by Varun and Ghazal Alagh, consists of Equilógica, The Derma Co., and Ayugaa in addition to their involvement with BeBulb and Dr. Sheth’s.
Even though the Mamaearth IPO’s future is still unknown, particularly in the short term, this could be a significant and precedent-setting event for all unicorn IPOs.”
