Mamaearth IPO: Issue Sees Muted Response On Day 1, Employee Portion Oversubscribed

SUMMARY

Mamearth’s public issue was subscribed 0.13X at the end of Day 1, receiving bids for 36.25 Lakh shares as against 2.88 Cr shares on offer

While employee portion was oversubscribed 1.98X, retail quota was subscribed 0.34X

Mamaearth has set the IPO price band at INR 308-INR 324 and is looking to raise capital at a valuation of nearly $1.2 Bn

D2C unicorn Mamaearth’s initial public offering (IPO) saw a muted response on the maiden day, with the issue subscribed a mere 0.13X.

The issue received bids for 36.25 Lakh shares as against 2.88 Cr shares on offer, as per the BSE data.

Leading from the front was the portion reserved for employees, which was oversubscribed 1.98X at the end of the day. Employees placed bids for 67,344 shares as against 34,013 shares on offer.

On the other hand, retail quota was subscribed 0.34X on Day 1, with retail investors bidding for 17.82 Lakh shares as against 52.24 Lakh shares on offer. Following suit were qualified institutional buyers (QIBs), who placed bids for 15.43 Lakhs shares as against 1.55 Cr shares on offer. The QIB portion was subscribed 0.10X.

The quota for non-institutional investors (NIIs) saw little takers as subscriptions stood at 0.03X. Of the 78.72 Lakh shares reserved, NIIs bid for 2.32 Lakh shares on Day 1.

The IPO will now close on November 2.

The beauty and personal care brand has set the IPO price band in the range of INR 308 to INR 324 and is looking to raise up to INR 1,700 Cr in capital at a valuation of nearly $1.2 Bn through the market debut. On Monday, the company bagged INR 765.2 Cr from anchor investors via allocation of 2.36 Cr equity shares.

Mamaearth’s IPO comprises a fresh issue of shares worth INR 365 Cr and an offer for sale (OFS) element of 4.12 Cr.

Founded in 2016 by the couple of Ghazal and Varun Alagh, Honasa Consumer, the parent of Mamaearth, also sells beauty and personal care products under a range of brands such as Aqualogica, The Derma Co., and Ayuga. It operates BBlunt and Dr. Sheths range of salons and retails its products through both marketplace and offline channels.