Mamaearth's Rs 1,701-crore IPO to open on Tuesday. What does GMP signal ahead of issue launch?
Mamaearth, will open for subscription on Tuesday. The anchor investor allocation will be done later today.
Ahead of the issue opening, the company's shares are commanding a marginal premium of Rs 7 in the unlisted market.
Mamaearth has fixed a price band of Rs 308-324 per share for its IPO, which closes on November 2.
At the upper end of the price band, the company is valued at Rs 10,425 crore and is planning to raise Rs 1,701 crore through the public offer.
The IPO includes a fresh equity issue of Rs 365 crore and an offer for sale of about 4.12 crore shares. Under the OFS, founders Varun Alagh and Ghazal Alagh along with investors Kunal Bahl, Shilpa Shetty, Rishabh Mariwala will offload partial stakes.
Investors can bid for a minimum of 46 shares in one lot and in multiples thereafter.
About 75% of the offer is reserved for qualified institutional buyers, 15% for non-institutional investors and the remaining 10% for retail investors.
Proceeds from the listing will be used for advertising expenses, capital expenditure in setting up new exclusive brand outlets (EBOs), investment in its subsidiary BBlunt for opening new salons, and for general corporate purposes and unidentified inorganic acquisitions.
Honasa Consumer, a beauty and personal care brand (BPC), has a product portfolio in the baby care, face care, body care, hair care, colour cosmetics and fragrances segment.
Besides its own offline stores, the company sells products through its own platform, marketplaces like Amazon, Flipkart and Nykaa as well as other offline supermarket stores.
It had posted a loss of Rs 151 crore in FY23 against a profit of Rs 14.4 crore a year earlier. The Delhi-based startup reported a 58% jump in its revenues to Rs 1,493 crore
