Mamaearth parent Honasa Consumer sees IPO going in the right direction

economictimes.indiatimes.com:

post-listing experience of public market investors from some of the earlier initial public offerings of new-age companies is unlikely to have an impact on the offering of Mamaearth parent Honasa Consumer, its cofounder and chief executive said.

“The numbers should showcase in the next few days. We feel like it’s going in the right direction,” Varun Alagh told ET in an interview. “The retail portion has been subscribed 35% on day 1. For whatever reason, some people would have tasted bad blood but there have been multiple IPOs where there were 70-80% listing gains,” he added.

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Honasa Consumer’s Rs 1,700 crore IPO opened for public subscription on Tuesday. It is offering the shares at a price band of Rs 308-324 each.

Alagh advised against making a call on a company based on its short-term performance on the stock market. “If you’re trying to measure performance over 3-6 months, you should not … If you genuinely like a company, stay invested for a few years and measure our performance over the index and that’s what one should hold the company accountable to,” he added.


On the first day, the IPO received bids for 12% of the shares on offer, mostly from retail individual investors and the company’s employees. The retail portion got 35% subscribed, while the shares reserved for employees received bids for 1.97 times.

The omnichannel retailer’s public offering is the first IPO by a major venture-backed new-age company in over a year since Delhivery’s offer