The initial public offering (IPO) of Honasa Consumer Ltd, the parent company of Mamaearth, marked its conclusion on November 2. The IPO, valued at ₹1,701 crore ($227 million), saw a subscription rate of 70% on the second day. The offering included a fresh issue of ₹365 crore ($49 million) shares and an offer for sale (OFS) of up to 4.12 crore shares.
Promoters Varun Alagh and Ghazal Alagh were among the stakeholders selling shares in the offering, with Alagh offloading 3,186,300 shares and Ghazal Alagh up to 100,000 shares. Other stakeholders participating in the OFS included Fireside Ventures Fund, Sofina, Stellaris, Kunal Bahl, Rohit Kumar Bansal, Rishabh Harsh Mariwala (son of Marico's Founder and Chairman Harsh Mariwala), and Shilpa Shetty Kundra.
The IPO was divided into segments reserved for Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), retail investors and employees. The final subscription numbers from day 2 show a varied response across these segments with retail investors at 62%, NII at 9%, QIB booked at 1.02 times, and employees at 3.19 times.
In the run-up to the public listing, Honasa raised ₹765.20 crore ($102 million) by allotting 2.36 crore equity shares to a group of 49 anchor investors at ₹324 per share. The company plans to use the proceeds from the IPO for various business activities including advertising, opening new outlets, investing in its subsidiary BBlunt for new salons, inorganic acquisitions and other corporate purposes.
Honasa Consumer Ltd, besides Mamaearth, also owns brands like The Derma Co, Ayuga, Aqualogica, and Dr Sheth's. Against the total offer of 2,88,99,514 shares, bids were received for 2,01,49,012 shares.
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