Mamaearth Becomes 40th Indian IPO Of 2023, Breaks Last Year's Record

Honasa Consumer, the parent company of the popular skincare brand Mamaearth, successfully made its debut on the mainboard as the 40th Indian initial public offering (IPO) of 2023. This milestone achievement surpasses the total number of IPOs recorded in the previous year, which stood at 39.

The three-day subscription period for the Honasa Consumer IPO witnessed an overwhelming response from investors, with the overall subscription reaching a staggering 7.6 times the offer size. The driving force behind this massive subscription came primarily from institutional investors and employees, demonstrating their strong confidence in the company's growth potential.

Retail investors, however, exhibited a more cautious approach, with the portion of shares reserved for them achieving only 1.35 times subscription. This modest subscription from retail investors is the sixth-lowest among this year's IPOs. Notable companies that saw even lower retail investor subscriptions than Honasa Consumer include SAMHI Hotels, Sai Silks (Kalamandir), HMA Agro, Mankind Pharma, and Avalon Technologies.

Remarkably, the retail portions of HMA Agro, Mankind Pharma, Sai Silks (Kalamandir), and Avalon Technologies did not even reach full subscription. Nevertheless, it's worth noting that these five IPOs with lower retail subscriptions are currently trading above their IPO prices.

Recent listings, such as SAMHI Hotels and Sai Silks (Kalamandir), have experienced gains ranging from 10% to 20% above their IPO prices, while Mankind Pharma has surged by an impressive 70% from its issue price. Mankind Pharma is also in the spotlight this month, as its shareholder lock-in period is set to end on November 6, which will release 70% of its outstanding shares for trading.

Several other recent listings, including Updater Services (1.45 times subscription), Manoj Vaibhav Gems 'N' Jewellers Ltd (1.73 times subscription), and Blue Jet Healthcare (2.24 times subscription) have also observed retail investors exercising caution, contributing to the subdued retail subscription trend.

The Honasa Consumer IPO marks a significant milestone in the Indian IPO market, with Mamaearth's parent company gaining substantial traction from institutional investors and employees.