Mamaearth parent company of Honasa Consumer IPO is getting lackluster response from investors. Only 12 percent of this issue could be subscribed on the first day of subscription. It has received bids for 36.08 lakh shares while there are 2.88 crore shares on offer. You will be able to invest money in Honasa Consumer’s Rs 1701 crore IPO till November 2. The price band of Rs 308-324 and lot of 46 shares is fixed for this IPO. Employees will get a discount of Rs 30 on each share.
Subscription related details
Qualified Institutional Buyers (QIB) – 10 percent
Non-institutional investors – 3 percent
Retail investors – 34 percent
Total – 12 percent
(BSE, 31 Oct 2023 | 05:00:00 PM)
Details related to IPO
75 percent of this IPO is reserved for Qualified Institutional Buyers (QIB), 15 percent for Non-Institutional Investors (NII) and 10 percent for retail investors. After the success of the IPO, the allotment of shares will be final on 7th November and entry on BSE, NSE will be on 10th November. The registrar to the issue is Kfin Tech.
Under the issue, new shares worth Rs 365 crore will be issued. Apart from this, 41,248,162 shares with face value of Rs 10 will be sold under the Offer for Sale (OFS) window. Through this IPO, Varun Alagh and Ghazal Alagh, Sofina Ventures SA, Evolvence, Fireside Ventures, Stellaris Venture Partners, Snapdeal Founder Kunal Bahl, Bollywood actress Shilpa Shetty Kundra, Rishabh Harsh Mariwala and Rohit Kumar Bansal will reduce their stake.
Now talking about the use of IPO money, those who sell shares will get the money from the offer for sale. The money that the company will get by issuing new shares; That will be in advertisements, opening of new exclusive brand outlets, investment in Bblunt to open new salons, investment in general corporate objectives and inorganic growth.
About Honasa Consumer
Shark Tank fame husband-wife Varun and Ghazal Alagh started Honasa Consumer in 2016. In January 2022, it had raised funds of $52 million at a valuation of $120 million and joined the Unicorn Club. Talking about financial health, Honasa had a net loss of Rs 1,324.61 crore in the financial year 2021 and made a net profit of Rs 14.44 crore in the very next financial year. However, it suffered a net loss of Rs 150.97 crore in FY 2023. Talking about the current financial year 2024, it had made a net profit of Rs 24.72 crore in the June quarter.
