Mamaearth IPO: Shilpa Shetty is poised to make ₹15.65 crore

The price band for the Mamaearth parent company, Honasa Consumer's initial public offering (IPO), has been set at ₹308 to ₹324 per equity share. The IPO will open for subscription from October 31st till November 2.

Bollywood actress Shilpa Shetty Kundra, one of the early investors, is likely to earn more than ₹15 crore from the IPO.

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

Shilpa Shetty's earnings from the IPO are detailed in the Draft Red Herring Prospectus (DRHP). She is listed as one of the promoters who will be selling their shares in Mamaearth's parent company, Honasa Consumer Limited. Shilpa Shetty has offered 5,54,700 company shares for sale, which she originally purchased at ₹41.86 per equity share. Her net investment in these shares offered for sale is approximately ₹2.32 crore.

Here's how Shilpa Shetty will make the money

Considering that the Mamaearth IPO's price band is set at ₹308 to ₹324 per equity share and shares are often allotted at the upper price band, Shilpa Shetty's shares are likely to be sold at ₹324 per share. Consequently, the proceeds from the sale of Shilpa Shetty's 5,54,700 shares would amount to ₹17,97,22,800.

Thus, Shilpa Shetty is expected to earn around ₹15.65 crore (₹17,97,22,800 - ₹2,32,19,742) from this forthcoming IPO.

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.