Mamaearth IPO Starts Slow: Only 11% Subscribed on Day 1

Investor’s reaction to the first public offering (IPO) of Honasa Consumer, the parent company of Mamaearth, was slow. During the first few hours of the bidding process, many consumers showed little interest in purchasing shares. The IPO, which got underway today, was largely well-liked by the general public and workers.

The pricing range for Honasa Consumer’s shares is Rs 308 to Rs 324 a share. Through this IPO, they hope to raise Rs 1,701 crore. This comprises the selling of 4.12 crore existing shares by the promoters and other investors, along with a fresh investment of Rs 365 crore.

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By 2:30 pm on October 31, just 11% of the shares offered—that is, 31,75,196 out of 2,88,99,514 shares—had been bid for by investors. The three days of bidding will extend till November 2.

Regular investors subscribed for 27% of their shares among the various investor classes, but large investors (NIIs) showed very little interest with only 2% subscriptions. More interest than anticipated was shown by the staff. 1.75 times as many shares were applied for as were allotted. Ten percent of their shares were subscribed for by large institutional investors (QIBs).

Concerns over this IPO have been voiced by some financial experts. They said the corporation is losing money and that the share prices are too high.

Honasa gave 2,36,17,228 shares to 49 anchor investors, raising Rs 765.2 crore. The IPO is being managed by Kotak Mahindra Capital Company, Citigroup Global Markets India, JM Financial, and JP Morgan India. The registrar is Kfin Technologies. The BSE and NSE stock exchanges will both allow trading of the shares.

Please be aware that this is not an investment recommendation; rather, it is informational. Talk with a financial professional before making any choices about investments.

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