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Shares of Honasa Consumer Ltd, which owns Mamaearth, had a quiet start on Dalal Street on Tuesday. The stock opened at Rs 330 on the NSE, just 2% more than its issue price of Rs 324. On the BSE, it began at the same price as the issue.
People expected a higher start for Honasa Consumer, predicting an 8% rise from a Rs 25 premium per share in the grey market. But this expectation didn’t fully materialize as the market premium was modest when the share sale started.
Honasa Consumer priced its shares between Rs 304 to Rs 328 and sold them to gather Rs 1,701.44 crore through its IPO. This sale included new shares worth Rs 365 crore and 5.25 crore existing shares. The sale happened from October 31 to November 2.
The IPO was popular, getting 7.61 times more orders than available shares, mainly from big institutional buyers who ordered 11.5 times their share. Non-institutional investors put in orders for 4.02 times their allocation. Retail investors and employees showed interest too, with 1.35 and 4.88 times more orders than their portions.
Started in 2016, Honasa Consumer sells beauty and personal care products in over 500 cities. It has built several brands like Mamaearth, The Derma Co., Aqualogica, Dr. Sheth's, and Ayuga.
Varun and Ghazal Alagh, a married couple, started Honasa. The company offers a range of products for babies, faces, bodies, hair, makeup, and fragrances. It also runs BBlunt Salons, adding to its business.
Kotak Mahindra Capital, JM Financial, Citigroup Global Markets, and JP Morgan managed the share sale, while Kfin Technologies took care of the IPO process for Mamaearth.
