“Mamaearth” CEO Ghazal Alagh, in an anticipatory tone, expressed astonishment at the journey of the brand, a venture initiated just 2.5 years ago. The Mamaearth IPO was set at a price band of ₹308-324 per equity share, each holding a face value of ₹10, with a lot size of 46 shares and its multiples. The public offering began on October 31, concluding on November 2. Although the IPO faced initial hesitancy, it picked up momentum, witnessing oversubscriptions within hours, mainly in the QIB and employee segments.
Mamaearth Statistical Insights: Subscriptions and Interest
The Mamaearth IPO, on its third day, recorded a 7.61 times oversubscription. The retail investors’ section saw 1.35 times subscription, while the NII and QIB segments witnessed higher figures at 4.02 times and 11.50 times, respectively. Day 2 observed a 70% subscription, while the first day saw a 13% subscription.
IPO Structure and Intentions :
The Mamaearth IPO, comprising a 4.12 crore share offer and fresh issue shares worth ₹365 crore, indicates the sale of shares by Honasa promoters, Varun Alagh and his wife, Ghazal Alagh. Notably, several other shareholders, including notable names like Kunal Bahl, Shilpa Shetty Kundra, and Rishabh Harsh Mariwala, will also divest their stakes.
The objectives behind the issuance proceeds include brand exposure through advertising, investment in new Exclusive Brand Outlets (EBOs), supporting Bhabani Blunt Hairdressing Private Limited (BBlunt), among other corporate purposes and potential inorganic acquisitions.
IPO Financial Leads and Anchor Investment :
Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, JM Financial Limited, and J.P. Morgan India Private Limited serve as book-running lead managers. Kfin Technologies Limited acts as the registrar. Earlier, the Honasa Consumer IPO secured ₹765.20 crore from anchor investors, with a 33.1% allocation to prominent mutual funds.
Current Market Scenario and Investor Sentiment :
The Mamaearth IPO’s Grey Market Premium (GMP) stands at +24, signifying a premium of ₹24 in the grey market. This suggests that Mamaearth share price is trading at a 7.41% premium compared to its IPO rate. The GMP, reflecting investor sentiment, ranges from ₹0 to ₹47 across 16 sessions, indicating strong market interest in the IPO price.
The ‘Grey Market Premium’ is an indicator of investor willingness to pay higher than the issue price, serving as a barometer of market anticipation and confidence in the stock’s potential.
