Mamaearth's IPO oversubscribed 7.6 times, receives bids worth Rs. 7,130cr
What's the story
Mamaearth, an Indian skincare start-up, has seen its initial public offering (IPO) oversubscribed by a factor of 7.6, drawing bids totaling Rs. 7,130 crore.
Over 220 million shares were sought by investors, far surpassing the 28.9 million shares on offer, with institutional investors demonstrating the greatest demand.
Co-founded in 2016 by ex-Hindustan Unilever executive Varun Alagh and his spouse Ghazal, Mamaearth had previously postponed its IPO plans in March due to unfavorable market conditions.
Details
Details of Mamaearth's IPO
The IPO consists of new issuance of shares valued at Rs. 365 crore.
Meanwhile, existing investors such as co-founders Stellaris Venture Partners, and Bollywood actress Shilpa Shetty are offloading 41.2 million shares, as stated in the company's prospectus.
Mamaearth, officially known as Honasa Consumer, has established a share price range of Rs. 308-324.
At the upper limit, the sale of investor shares would generate Rs. 1,336 crore. The firm is slated to be listed on stock exchanges next week.
What Next?
Financial performance and market outlook
For the quarter spanning April to June, Honasa Consumer's revenue surged by approximately 49%.
Mamaearth is part of an industry projected to expand from $17.8 billion in 2020 to $28 billion by 2025, according to financial services firm Avendus, which is backed by KKR.
It competes with brands like Sugar and Health & Glow in India's beauty and personal care sector.