Mamaearth IPO Launches Today: Check GMP, Important Dates, Review, And Other Details Here

Mamaearth IPO: The initial public offering (IPO) of Mamaearth parent Honasa Consumer will open for subscription today. Honasa Consumer IPO will be open for subscription till November 2, which means that investors can place their bids by this date.

Mamaearth's valuation was pegged at $3 Billion (approx Rs 24,000 Crore) in June 2022.

Mamaearth parent, Honasa Consumer, is the second company to go public this week, after Cello World IPO. Ahead of the IPO launch, Honasa Consumer Ltd allotted 2.36 crore equity shares to 49 anchor investors and raised Rs 765.20 crore on Monday.

Mamaearth IPO date: The IPO of Mamaearth parent Honasa Consumer opens for subscription today (October 31) and the offer will conclude on Thursday, November 2.

Mamaearth IPO price: The company has fixed the price band for its issue at Rs 308-324 per equity share of a face value of Rs 10 each.

IPO Size:

The Gurugram-based beauty and personal care (BPC) company is looking to raise up to Rs 1,701 crore through public issue, at the upper price band.

The IPO consists of a fresh issuance of shares worth Rs 365 crore, and an offer-for-sale (OFS) of 4.13 crore equity shares by promoters and investors.

Lot Size

Investors can place bids for a minimum of 46 equity shares and in multiples of 46 shares thereafter. In the public offer, since one lot comprises 46 company shares, the minimum amount required by retail investors to apply for the IPO is Rs 14,904 ( Rs 324 x 46), while the maximum investment allowed is Rs 1,93,752 for 598 equity shares. The highest investment amount in the IPO should not exceed Rs 2 lakh.

The company has reserved 75% of the net issue for qualified institutional buyers (QIB), 15% is allotted for high net-worth individuals (non-institutional investors), and the rest 10% is allotted for retail investors.

Mamaearth IPO Listing Date

The Sequoia Capital-backed company is expected to finalize the basis of the allotment of IPO shares by the end of November 7. Equity shares of the IPO will be credited to the demat accounts of eligible investors by November 9.
Shares of the company will likely start trading on the BSE and NSE, with effect from November 10.

Mamaearth IPO GMP:

The equity shares seem to be getting muted responses in the grey market. According to market observers, shares of Honasa Consumer Limited are available at a premium of Rs 10 in the grey market today.

About Honasa Consumer Limited:

Honasa is involved in the building of a new generation of beauty and personal care brands. The company's in-house portfolio of brands comprises household favorites like Mamaearth, The Derma Co., Aqualogica, and Ayuga. We have also made strategic acquisitions to strengthen our portfolio - BBlunt (Products and services), Dr Sheth's (dermatologist-formulated skincare brand).

IPO Review:

For the manufacturing of its products, Honasa relies completely on third-party manufacturers. In FY23 and Q1FY24, the top three manufacturers contributed over 40% of the total value of the company's purchase of traded goods.
The company obtains a significant amount of revenue from a limited number of products. In the future, the launch of new brands or products that fail to attract consumers could likely impact the company's growth plans. Besides, the company faces stiff competition from other competitors in the direct-to-consumer (DTC) segment.