Mamaearth Touches Record High As Shares Jump 13% Intraday

Shares of Honasa Consumer Ltd, the parent entity of D2C unicorn Mamaearth, touched a new record high at INR 374.95 on Monday (November 20) as they jumped almost 13% intraday on the BSE.

Mamaearth listed on the Indian stock exchanges on November 7. The shares listed at INR 330 on the NSE, slightly above its issue price of INR 324. On the BSE, the stock saw a flat listing. 

After surging intraday, the stock pared some of the gains to end today’s trading session 5.5% higher at INR 350.45 on the BSE.

Mamaearth witnessed a lukewarm response from the market during its IPO, with retail investors showing less interest in subscribing for the issue. While its public issue was oversubscribed 7.61X overall, the retail investors’ portion was oversubscribed a mere 1.35X.

With its listing, Mamaearth became the latest loss-making new-age tech company to go public after 2021 saw several such entities, including Zomato, Paytm, and PB Fintech, listing on the stock exchanges only to witness a bloodbath later on.

As a result, a few analysts also cautioned investors about the stock. Prashanth Tapse, senior VP research analyst at Mehta Equities, had highlighted the company’s loss in FY23, high competition, low promoter stake, and a high portion of offer for sale (OFS) in the public issue.

Mamaearth’s public issue comprised an OFS of 4.12 Cr shares and a fresh issue of shares worth INR 365 Cr. 

After reporting a profit in FY22, the company once again slipped into loss in FY23 and posted a net loss of INR 151 Cr.

The company is scheduled to release its financial statements for the quarter ended September 30, 2023 later this week.

Mamaearth’s current market cap stands at INR 11,228.96 Cr ($1.3 Bn).