Honasa Consumer, the parent company of the popular brand Mamaearth, has announced the launch of its initial public offering (IPO) on October 31. The company has set the price band for its shares at ₹308-324, each with a face value of ₹10.

Mamaearth IPO: What to know

Aiming to raise a substantial ₹365 crore in primary capital, Mamaearth IPO will offer over 41 million equity shares for sale. Notably, several existing investors, including Fireside Ventures, Stellaris Venture Partners, and Sofina Ventures, along with renowned personalities like Shilpa Shetty, Kunal Bahl, and Rohit Bansal, will be offloading a portion of their shares through this IPO.

The subscription window for the Mamaearth IPO will open on October 31 and conclude on November 2. With the floor price set at 30.80 times the face value and the cap price at 32.40 times, potential investors can opt for a lot size of 46 equity shares, with increments in multiples of 46 thereafter.

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Mamaearth IPO: Allocation structure

Breaking down the allocation, a significant 75% of the shares in the Mamaearth IPO are reserved for Qualified Institutional Buyers (QIB). Non-Institutional Investors (NII) can take up to 15%, while Retail Investors have a 10% reservation. Additionally, eligible employees stand to gain a ₹30 per share discount when bidding in the employee reserve segment.

Diving deeper into the IPO structure, it comprises an offer for sale (OFS) of approximately 4.12 crore shares and a fresh share issuance worth up to ₹365 crore. Key stakeholders, including the company’s promoter Varun Alagh and several other shareholders, will be parting with their stakes in this OFS.

Mamaearth IPO: What’s the fundraise for?

The company will channel the raised funds towards various strategic initiatives, including promoting the brand, establishing new exclusive brand outlets, and supporting the growth of its subsidiary, BBlunt. The company also has plans for an undisclosed acquisition.

Overseeing Mamaearth IPO are leading financial institutions like Kotak Mahindra Capital, Citigroup Global Markets, Jm Financial, and J.P. Morgan India. The final allocation is expected to wrap up by November 7, with a tentative listing on both BSE and NSE slated for November 10.

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