Mamaearth shares disappoint at debut; Honasa Consumer debuts with 2% premium at Rs 330

Shares of Honasa Consumer Ltd made a flat debut at Dalal Street on Tuesday as the counter was listed at Rs 330, a premium of 2 per cent over its issue price of Rs 324 apiece on the NSE, while the parent company of Mamaearth kicked-off its innings at par on BSE at Rs 324.

The listing of Honasa Consumer has been less-than-expected. Ahead of its listing, Honasa Consumer was commanding a premium of Rs 25 per share in the unofficial market, suggesting a listing pop of 8 per cent. However, the premium in the unofficial market was in the single digits when the issue opened for bidding.

Honasa Consumer sold its shares in the range of Rs 304-328 with a lot size of 46 equity shares to raise a total of Rs 1,701.44 crore via IPO route. The issue included a fresh share sale of Rs 365 crore and offer for sale of 5.25 crore equity shares. The issue was open for bidding between October 31 to November 2.

The issue was overall subscribed 7.61 times, mostly led by qualified institutional bidders (QIBs), whose portion was booked the highest at 11.50 times. Allocation set aside for non-institutional investors saw 4.02 times bidding. The quota reserved for retail investors and employees was subscribed 1.35 times and 4.88 times, respectively during the three-day bidding process.

Incorporated in 2016, Honasa Consumer provides beauty and personal care products, currently serving over 500 cities across the country. The company has grown several consumer brands internally including Mamaearth, The Derma Co., Aqualogica, Dr. Sheth's, and Ayuga.

Founded by the husband-wife duo of Varun and Ghazal Alagh, Honasa's product portfolio includes baby care, face care, body care, hair care, color cosmetics, and fragrances.  Honasa also has a professional salon chain named 'BBlunt Salons' to supplement its product portfolio.
 

Kotak Mahindra Capital, JM Financial, Citigroup Global Markets, and JP Morgan were lead book-running managers to the issue, while Kfin Technologies was appointed as the registrar for the IPO of Mamaearth.

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