Shares of Mamaearth parent company debuted at nearly 2% premium over the IPO price on the National Stock Exchange (NSE).
The stock of Honasa Consumer Limited, the parental company of FMCG brands like Mamaearth and one of the largest digital-first beauty and personal care brands in India, debuted on the national bourses at a premium on Tuesday, Nov. 7.
On the Bombay Stock Exchange (BSE), the shares were listed at par with the IPO issue price of ₹324, while on the National Stock Exchange (NSE) the price was ₹330 per share, 1.85% higher than the issue price.
At the point of writing, the Honasa stock is trading at ₹333.65 on BSE, illustrating a 3% intraday growth.
Mamaearth IPO opened for subscription on Tuesday, October 31, and closed on Thursday, November 2. It was subscribed 12% on day 1 and 70% on day 2 and got completely booked on the last day. The IPO consists of an offer for sale (OFS) of around 4.12 crore shares and a fresh issue of shares worth ₹365 crore.
Ahead of the IPO, Honasa Consumer has raised Rs 765.2 crore from 49 anchor investors, allotting 2.36 crore shares at Rs 324 apiece. The list of Honasa investors includes Capital Group (through Smallcap World Fund Inc.), Fidelity International, Norges Bank, Abu Dhabi Investment Authority, White Oak, Franklin Templeton, Kotak, DSP, and Goldman Sachs.
The Mamaearth parent company intends to use the net proceeds to raise the company’s brands’ exposure and awareness, build new EBOs, establish new salons for the company’s subsidiary, Bhabani Blunt Hairdressing Private Limited (BBlunt), finance an unidentified acquisition, and fulfil other general corporate objectives.
The primary objective of the Mamaearth brand is to provide customers with eco-friendly, toxin-free natural beauty and personal care products that adhere to international safety standards. Its commitment to sustainability and social responsibility has received appreciation from environmentally-conscious consumers, making Mamaearth one of the leading brands in the Indian personal care market.
As we have previously reported, NSE announced the timings for the Muhurat Trading Session 2023 on the occasion of Diwali considered auspicious by many investors.