Mamaearth IPO to open on October 31, price band announced
The IPO includes fresh issuance of shares worth up to Rs 365 crore and an offer for sale (OFS) of about 4.12 crore shares.
Honasa promoter Varun Alagh will sell 3,186,300 shares while his wife Ghazal Alagh will sell up to 100,000 shares in IPO. 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.
The bid lot size has been fixed at 46 shares per lot, which implies that the minimum bid lot amount in the retail category would be Rs 14,904. About 10% of the issue size has been reserved for retail investors, 15% has been allocated to the HNIs while the remaining 75% is reserved for qualified institutional buyers (QIB).
Honasa employees will get a discount of Rs 30 per share as well as a 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.
Book-running lead managers for the IPO include Kotak Mahindra Capital, Citigroup, JM Financial and JP Morgan.
Net proceeds from the IPO would be spent on advertisement expenses towards enhancing the awareness and visibility of brands, capital expenditure for setting up new EBOs, to set up new salons under its subsidiary Bhabani Blunt Hairdressing, general corporate purposes and unidentified inorganic acquisition.
Financial Snapshot
In the June quarter, the company’s revenue from operations stood at Rs 464.49 crore, up 49% from a year ago. Net profit stood at Rs 9.24 crore, according to filings. In the year-ago quarter, the company had reported a loss of Rs 2.51 crore.
The company has attributed the
