Honasa Consumer IPO Opens Today; Raises Rs 765 Crore From Anchor Investors

Mamaearth IPO: The Rs 1,701-crore offer consists of a fresh issue worth Rs 365 crore and an offer-for-sale (OFS) of 4.13 crore shares

The price band has been set at Rs 308-324 per share for its IPO.

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Mamaearth's parent firm Honasa Consumer initial public offering (IPO) opened for subscription on Tuesday. The Rs 1,701-crore offer consists of a fresh issue worth Rs 365 crore and an offer-for-sale (OFS) of 4.13 crore shares. Honasa Consumer, which owns new-age FMCG brands such as Mamaearth and The Derma Co, on Monday said that the company has mobilised Rs 765 crore from the anchor investors.

The public issue will continue till November 2. Investors can bid for a minimum of 46 equity shares and in multiples thereof. The price band has been set at Rs 308-324 per share for its IPO. At the upper end of the price band, the IPO is expected to fetch Rs 1,701.44 crore.

According to a circular uploaded on the BSE website, Honasa Consumer has allotted 2,36,17,228 equity shares to 49 entities at Rs 324 apiece, which is the upper end of the price band.

Aditya Birla Sun Life Mutual Fund (MF), Axis MF, Nippon India MF, Invesco MF, SBI Life Insurance Company, ICICI Prudential Life Insurance Company, Government Pension Fund Global, Caisse De Depot Et Placement Du Quebec, SmallCap World Fund Inc, Abu Dhabi Investment Authority, and Goldman Sachs (Singapore) are among the anchor investors, as reported by the PTI. According to the report, the IPO comprises a fresh issue of equity shares worth Rs 365 crore and an OFS component of 4.12 crore equity shares by promoters, investors, and other selling shareholders.

Those offering shares in the OFS include promoters, Varun Alagh and Ghazal Alagh, and investors like Fireside Ventures Fund, Sofina, Stellaris, Kunal Bahl, Rohit Kumar Bansal, Rishabh Harsh Mariwala and Bollywood actor Shilpa Shetty Kundra.

The Gurugram-based beauty and personal care firm was founded in 2016 by the husband-wife duo Varun and Ghazal Alagh. It began with the launch of Mamaearth. In January 2022, the company had entered the unicorn club. 

Earlier, analysts had raised concerns about Mamaearth's IPO. From, a valuation of $1.2 billion in January 2022, the company was reportedly seeking a valuation of $3 billion through its IPO, which is more than 1,000x its profits, according to a news report. It is being questioned by many. Some have compared the high valuation of the Mamaearth IPO to that of Paytm.