Mamaearth IPO Subscription Day 3: Honasa Consumer, guardian firm behind magnificence and private care model Mamaearth opened for subscription on October 31 and can shut immediately, November 2. The IPO will see the sale of three,186,300 shares by Honasa promoter Varun Alagh and as much as 100,000 shares by his spouse Ghazal Alagh.
Honasa Consumer has mopped up Rs 765.2 crore from 49 anchor buyers on October 30, the day earlier than difficulty opening.
Mamaearth IPO: Subscription
At 10:12 IST, Mamaearth IPO has been subscribed 72% on day 3, the place retail buyers portion was subscribed 66%, NII portion was subscribed 12%, and Qualified Institutional Buyers (QIB) portion had been booked 1.02 occasions, and worker portion was subscribed 3.39 occasions.
Mamaearth IPO: Price Band
The worth band for the supply 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 consumers (QIB), no more than 15 per cent for non-institutional buyers (NII), and less than 10 per cent of the supply 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 buyers 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 contemporary difficulty could 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, common company functions, and inorganic acquisition.
Mamaearth IPO: About the Company
The Gurugram-based magnificence and private care firm was based in 2016 by husband-wife duo Varun and Ghazal Alagh. It started with the launch of Mamaearth and over time 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 book-running lead managers to the problem. The fairness shares of the corporate shall 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 top of November 7. Equity shares shall be credited to demat accounts of profitable buyers 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
Mamaearth IPO GMP immediately or gray market premium is +9, much like the earlier session. This signifies Mamaearth share worth had been buying and selling at a premium of Rs 9 within the gray market on Thursday, in accordance with investorgain.com.
Considering the higher finish of the IPO worth band and the present premium within the gray market, the estimated itemizing worth of Mamaearth share worth was indicated at Rs 333 apiece, which is 2.78% increased than the IPO worth of Rs 324.
‘Grey market premium’ signifies buyers’ readiness to pay greater than the problem worth.
Mamaearth IPO: Whether To Buy or Not
Giving ‘subscribe’ tag to the IPO, Emkay Global mentioned, “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%).”
Honasa Consumer is the biggest private care and digital first magnificence firm when it comes to income as of FY2023. The firm has established a digital first omnichannel distribution community throughout on-line and offline channels. The income for the corporate has grown at a CAGR of 80 per cent over FY 21-23 with a quantity development of 102.28 per cent, mentioned Canara Bank Securities.
“The company has an adjusted EBITDA of 3.4 per cent as of FY23 with negative working capital on account of the asset light model that enables them to invest more on marketing, technology and product innovation . The company continuously strives for expansion of distribution by creating brand awareness,” it added with a ‘subscribe for long term’ advice for the problem.
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