Mamaearth IPO Subscription Day 2: Honasa Consumer, father or mother firm behind magnificence and private care model Mamaearth, goals to boost Rs 1,701 crore by way of its maiden public difficulty. It noticed a tepid response on day 1 of the subscription. The IPO contains a recent difficulty of fairness shares price Rs 365 crore and a suggestion on the market (OFS) element of 4.12 crore fairness shares by promoters, traders, and different promoting shareholders.
Honasa Consumer has mopped up Rs 765.2 crore from 49 anchor traders on October 30, the day earlier than difficulty opening.
Mamaearth IPO: Subscription
Mamaearth IPO has acquired bids for 36,17,256 shares in opposition to 2,88,99,514 shares on provide, in accordance with knowledge from the BSE on Day 1.
Mamaearth IPO retail traders’ portion acquired bids for 17,74,450 shares in opposition to 52,48,272 shares on provide for this phase.
Mamaearth IPO’s non-institutional traders’ portion acquired bids for two,32,300 shares in opposition to 78,72,409 on provide for this phase.
Mamaearth IPO’s Qualified Institutional Buyers (QIBs) portion acquired bids for 15,43,254 shares in opposition to 1,57,44,820 shares on provide for this phase.
Mamaearth IPO’s worker portion acquired bids for 67,252 shares in opposition to 34,013 on provide for this phase.
Mamaearth IPO: Price Band
The worth band for the provide has been mounted at Rs 308-324 per share
Mamaearth IPO: Lot Size
The Mamaearth IPO lot dimension is 46 fairness shares and in multiples of 46 fairness shares thereafter.
Mamaearth IPO has reserved not lower than 75 per cent of the shares within the public difficulty for certified institutional patrons (QIB), no more than 15 per cent for non-institutional traders (NII), and less than 10 per cent of the provide is reserved for Retail Investors.
A reduction of Rs 30 per fairness share is being supplied to eligible staff bidding within the worker reserve portion.
Mamaearth IPO: Promoters
Those providing shares within the OFS embody promoters and founders — Varun Alagh and Ghazal Alagh — and traders like Fireside Ventures Fund, Sofina, Stellaris, Kunal Bahl, Rohit Kumar Bansal, Rishabh Harsh Mariwala and Bollywood actor Shilpa Shetty Kundra.
Promoters together with Varun Alagh and Ghazal Alagh maintain 37.41 p.c stake in Honasa, and the remainder of shareholding is owned by public together with Peak XV Partners, Fireside Ventures Fund, Stellaris and Sofina.
Mamaearth IPO: Objective
Proceeds from the recent difficulty can be utilised in the direction of promoting bills to enhance consciousness and model visibility, establishing new unique model retailers, funding in its subsidiary BBlunt for establishing new salons, basic company functions, and inorganic acquisition.
Mamaearth IPO: About the Company
The Gurugram-based magnificence and private care firm was based in 2016 by husband-spouse duo Varun and Ghazal Alagh. It started with the launch of Mamaearth and through the years added 5 extra manufacturers to its portfolio, together with The Derma Co, Aqualogica, Ayuga, BBlunt, and Dr Sheth’s, and constructed a ‘House of Brands’ structure.
In January 2022, the corporate entered the unicorn membership. Kotak Mahindra Capital Company, Citigroup Global Markets India, JM Financial and JP Morgan India Pvt Ltd are the e book-working lead managers to the difficulty. The fairness shares of the corporate will likely be listed on the BSE and NSE.
Mamaearth IPO: Share Allotment & Listing
The Sequoia Capital-backed agency will finalise the idea of allotment of IPO shares by the tip of November 7. Equity shares will likely be credited to demat accounts of profitable traders by November 9.
The buying and selling in its fairness shares will begin on the BSE and NSE, with impact from November 10, as per the IPO schedule.
Mamaearth IPO: GMP
The fairness shares appear to be getting muted response within the gray market, buying and selling at round 2-3 p.c premium over the higher worth band, analysts on anonymity stated. The gray market is an unofficial platform for buying and selling in IPO shares until the itemizing.
Mamaearth IPO: Whether To Buy or Not
Giving ‘subscribe’ tag to the IPO, Emkay Global stated, “We assess the stock’s valuation for three scenarios (considering the upper-end of the band): i) Attractive (EV/sales of 3.5x and EV/EBITDA of 29x for FY26E), if Company doubles revenue in three years and improves OPM to ~12%; ii) Fair (EV/sales of 4.2x and EV/EBITDA of 41.7x for FY26E), if Company sees revenue CAGR of 20% with OPM of 10%; and iii) Expensive (EV/sales of 5.2x and EV/EBITDA of 87x for FY26E), if Company registers revenue CAGR of ~10% and maintains margin at ~6%).”
Swastika Investmart Limited analyst stated: “The financial performance of the company has been inconsistent, and it has reported losses in recent fiscals. Subsidiaries that it has acquired have also incurred losses. Additionally, the company does not manufacture its products and relies on third parties for that, and it also does not hold any patents over its product formulas.”
“The business’ return on advertising has also been consistent for a few years, i.e., 2.5%, thus the company’s client retention is very low. As it is a loss-making company, we cannot derive its actual P/E, but even after considering its outflow in the latest investment, the company is coming at an extremely high valuation. Thus, I will suggest to Avoid this IPO,” the analyst stated.
Disclaimer:Disclaimer: The views and funding suggestions by specialists on this News18.com report are their very own and never these of the web site or its administration. Users are suggested to verify with licensed specialists earlier than taking any funding selections.
