The renowned personal care brand, started their Mamaerth’s IPo on 31st October and It was open till 2nd November. IPO of Mamaearth parent Honasa Consumer Limited hit primary market from the first day.
• ABOUT MAMA EARTH
Mamaearth is distinguished in the cosmetics industry of India as an online platform. It offers a wide range of natural and toxin-free cosmetic products to elevate its customers’ daily skin care routine since 2016.
The parent company of Mamaearth brand is Honasa Consumer Private Limited. Ghazal Alagh, who was a judge on the reality show Shark Tank India, and her husband Varun Alagh are the founders of the company. According to an ET report, Mamaearth’s IPO launched on October 31.
Mamaearth’s IPO is not just about fund collection. It’s a business goal to support its vision and growth, business model, products, and the trust they have stowed from their consumers.
According to a report of, Mamaerth’s IPO worth the company at 1.2 billion to 1.4 billion dollars, i.e. 10 to 12 thousand crore rupees in Indian INR. Mamaearth had previously attempted an IPO last year, with the company seeking a valuation of more than $3 billion. Mamaearth’s parent company entered the unicorn club in January 2022, when it was valued at $1.2 billion.
What is IPO ?
Initial Public Offering (IPO) refers to the process where private companies sell their shares to the public to raise equity capital from public investors. The process of IPO converts a privately held company into a public company.
Mama Earth IPO highlights
1st DAY’S Highlights
•The Honasa Consumer IPO subscription saw a weariful response from the investors during the first few hours of the first day of bidding process.
A number of other shareholders, including Rishabh Harsh Mariwala, Fireside Ventures Fund, Sofina, Kunal Bahl, Shilpa Shetty Kundra, Stellaris, and Rohit Kumar Bansal agreed to sell their stakes in the OFS.
The beauty and personal brand is aiming to raise Rs 1,701 crore via IPO route, which consists of a fresh issue size of Rs 365 crore and offer-for-sale (OFS) of up to 4.12 crore equity shares by its promoters and other selling shareholders.
the company raised Rs 765 crore from anchor investors. The Gurugram-based company allocated 2,36,17,228 shares to 49 anchor investors to raise the amount.
The beauty and personal care brand Mamaearth’s parent firm has reserved 75 percent of the net issue size for qualified institutional buyers, 15 percent for high networth individuals and the remaining 10 percent for retail investors.
Highlights of 2nd day
According to ‘mint’,Mamaearth IPO has been subscribed 70% on the 2nd day .
•Mamaearth IPO retail investors portion was subscribed 62%
•NII portion was subscribed 9%
•Qualified Institutional Buyers (QIB) portion were reserved 1.02 times .
•employee portion was subscribed for 3.19 times. A discount of 30 rupees per equity share is being offered to eligible employees.
Mamaearth IPO has obtained bids for 1,97,44,948 equity shares, which aggregates for 68% of the total 2,88,99,514 available for subscription as of 3:40 pm on 1st October ( Wednesday).
Compared to recent IPOs, Honasa’s subscription rate after the second day was less impressive, reflecting unease about the company’s high valuation.
RATINGS
• Canara Bank Securities highlighted Honasa Consumer as the largest personal care and digital first beauty company in terms of revenue. The company has established a digital first omnichannel distribution network across online and offline channels.
“The company has an adjusted EBITDA of 3.4 per cent as of FY23 with negative working capital. The company continuously strives for expansion of distribution by creating brand awareness”.
• Shivani Nyati of Swastika Investmart highlighted Honasa’s inconsistency in financial performance, recent fiscal losses, and losses. She also stated that the company relies on third parties for product manufacturing and lacks patents for its product formulas. Directly, Investors are advised to avoid subscribing to the issue.
•StoxBox advised for avoid
Stoxbox highlighted a negetive point. According to stoxbox “Based on its annualized FY24 EPS, the IPO appears to be aggressively priced at 97 times.” They recommended an ‘avoid’ rating”.
Highlights of 3rd day
Mamaearth’s initial public offering was oversubscribed by 7.6 times, fetching bids worth 71.3 billion rupees ($856.75 million), exchange data showed on Thursday(November 2).
•Retail investors subscribed 1.35 times
• NII portion reached 4.02 times, QIB portion was oversubscribed at 11.50 times
• employees showed strong interest with a subscription rate of 4.87 times, as per data.
• Capital-backed firm will put through the basis for allotment of IPO shares by November 7. The equity shares will be credited to the demat accounts of successful investors by November 9.
equity shares will begin on BSE and NSE, from November 10 as per the IPO schedule.
•Some analysts said that Equity shares seem to be getting a muted response in the gray market.
• Ashneer Grover congratulated the founders of Mamaearth for getting the IPO over-subscribed.
