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

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.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Mamaearth IPO: Issue Sees Muted Response On Day 1, Employee Portion Oversubscribed-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Mamaearth IPO: Issue Sees Muted Response On Day 1, Employee Portion Oversubscribed-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Mamaearth IPO: Issue Sees Muted Response On Day 1, Employee Portion Oversubscribed-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Mamaearth IPO: Issue Sees Muted Response On Day 1, Employee Portion Oversubscribed-Inc42 Media
Mamaearth IPO: Issue Sees Muted Response On Day 1, Employee Portion Oversubscribed-Inc42 Media
You’re in Good company