Mamaearth IPO: Parent Honasa Consumer sets price band at ₹308-₹324; IPO to open on Oct 31

Mamaearth IPO Issue Date: Honasa consumer that owns Mamaearth will launch its intial public offering on October 31. Investors can subscribe for the shares until November 2. The price band has been set at Rs 308-324 per share.

IPO Valuation and Issuance

Through the IPO, the company is planning to raise Rs 1,701 crore. At a valuation of Rs 10,425 crore, the offering includes fresh issuance of shares worth up to Rs 365 crore and an offer for sale (OFS) of about 4.12 crore shares.

As per the pre-IPO shareholding pattern, the promoters of the company owns 37.41% stake in the company. For the company to go public, Honasa promoter Varun Alagh will sell 3,186,300 shares while Ghazal Alagh will sell up to 100,000 shares.

Also Read: Mamaearth's parent Honasa plans Rs 1,700 crore IPO at Rs 10,500 crore valuation on October 31: Report

Other shareholders who would be selling stake in the OFS include Kunal Bahl, Shilpa Shetty Kundra, Rishabh Harsh Mariwala, Fireside Ventures Fund, Sofina, Stellaris and Rohit Kumar Bansal.

Mamaearth IPO bid lot size

The bid lot size is fixed at 46 shares per lot. A bid lot is the pre-determined number of shares which have to be applied for by an investor. By this the minimum bid lot amount in the retail category would be Rs 14,904.

While 10% of the issue size will be given to retail investors, 15% has been allocated to the HNIs while the remaining 75% is reserved for qualified institutional buyers.

The company has also mentioned that employees of Honasa will get a discount of Rs 30 per share and reservation of equity shares worth up to Rs 10 crore. The stock will get listed on both NSE and BSE on November 10 while the finalisation of the basis of allotment is likely to be done by November 7.

The net proceeds of the IPO will be used for advertisement expenses to improve brand visibility and awareness, setting up new exclusive brand outlets, investment in BBlunt for setting up new salons, general corporate purposes and inorganic growth.