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D2C personal care products brand Mamaearth's IPO subscribed 7.61 times

MoneyControl  

The initial public offering (IPO) of Gurugram-based Honasa Consumer Ltd, the parent of personal care brand Mamaearth, has been subscribed 7.61 times, receiving bids for 22 crore shares against the issue size of 2.89 crore shares. Retail investors bought 1.35 times, high net worth individuals (HNI) bought 4.02 times and qualified institutional buyers (QIB) picked 11.5 times of the respective allotted quota. The firm, promoted by Varun Alagh and Ghazal Alag, has reserved 75% of the net issue size for QIBs, 15% for HNIs and the remaining 10% for retail investors. The price band for the offer, which opened on October 31, has been fixed at INR 308-324 per share. Through the IPO, Honasa Consumer aims to raise INR 1,701 crore. The offer comprises a fresh issuance of shares worth INR 365 crore and an offer-for-sale (OFS) of 4.13 crore equity shares by shareholders including Sofina, Stellaris Venture Partners, Titan Capital (the investment firm started by Snapdeal founders Kunal Bahl and Rohit Kumar Bansal) and Shilpa Shetty Kundra. The direct-to-customer (D2C) company will use INR 182 crore to fund advertisement expenses and INR 20.6 crore for setting up new exclusive brand outlets (EBOs). The company will also invest INR 26 crore in its subsidiary, BBlunt to set up new salons. The remaining amount will be used for inorganic acquisitions.