Mamaearth IPO: Snapdeal sharks hit jackpot, turn Rs 38 lakh into Rs 38 crore in 6 years
Snapdeal co-founders Kunal Bahl and Rohit Kumar Bansal are among the two sharks who had acquired stakes in the digital-first beauty and personal care company at an average cost price of just Rs 3.21 per share in August 2017. At the upper price band of Rs 324, the duo stands to make an astounding profit of Rs 38.27 crore translating into a return of 9,993%.
Bahl and Bansal are selling 1,19,3250 shares out of the total 2,386,500 shares owned by them ahead of the IPO.
The duo had bought 1.19 crore shares at about Rs 38.30 lakh and are now selling them at Rs 38.66 crore in the IPO, which includes an offer for sale (OFS).
Others offloading partial stakes in the OFS include promoters and the husband-wife team of Varun Alagh and Ghazal Alagh, Rishabh Harsh Mariwala, Bollywood actor Shilpa Shetty Kundra, Fireside Ventures, Sofina and Stellaris.
Shilpa Shetty is selling 1.39 crore shares which she had acquired in 2018 at an average cost price of just Rs 41.86 per share. The actress is making a smart profit of 674%.
Rishabh Harsh Mariwala, the son of Marico founder Harsh Mariwala, is also selling around 5.7 crore shares bought at Rs 6.05 per share.
His return stands at 5,255%.
Based on the upper price band of Rs 324, Mamaearth is seeking a post-IPO market capitalisation of Rs 10,425 crore. Out of the total IPO size of Rs 1,701.44 crore, the OFS size is worth Rs 1,336.44 crore and a fresh issue of Rs 365 crore.
Post IPO, the shareholding of promoters would come down to 35.3%.
Started in 2016 with the launch of its flagship brand Mamaearth, which focuses on developing toxin-free beauty products made with natural ingredients, the company reported a revenue of Rs 464.5 crore in Q1 and a profit of Rs 2.47 crore. Its revenue
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