Shilpa Shetty likely to earn massive return from Mamaearth IPO: How does it compare with Alia, Katrina's Nykaa profit?
₹1,701 crore initial public offering of Honasa Consumer Limited, popularly known as Mamaearth, opened on October 31. As per the RHP, Shilpa Shetty Kundra has invested ₹6.7 crore in the company, acquiring over 16 lakh shares at ₹41.86 apiece. The actor will be selling 13.93 lakh shares in the offer for sale (OFS) portion of the IPO.
The price band is set at ₹308-324. On an investment of ₹5.83 crore (for the 13.93 lakh shares she will be offloading), the ‘Baazigar’ actress is likely to earn around ₹39.30 crore from this public issue, irrespective of the kind of listing Mamaearth IPO gets. This is over 674 times her initial investment of ₹5.83 crore.
As per the details available in DRHP, actress Shilpa Shetty has offered 13,93,200 company shares to offload in this upcoming IPO, which she had bought at ₹41.86 per equity share. So, her net investment in these shares offered for sale is ₹5,83,19,352 or around ₹5.83 crore. As Mamaearth's IPO price band has been fixed at ₹308- 324 per equity share and it has been found most of the time that shares are allotted at the upper price band to the applicants, Shilpa Shetty's shares would likely be sold out at ₹324 per share level.
Hence, the amount generated after offloading her shares would be ₹45,13,96,800 or around ₹45.13 crore. So, Shilpa Shetty would earn ₹39,30,77,448 or around ₹39.30 crore ( ₹45,13,96,800 crore - ₹5,83,19,352) from this upcoming IPO. Both Katrina Kaif and Alia Bhatt were early investors in Nykaa and earned substantial sums on its listing.
Alia Bhatt had invested ₹4.95 crore in the parent company of Nykaa, FSN E-Commerce Ventures, in July 2020 and her return was estimated to be ₹54 crore. This was over 1,090 times the invested amount. Similarly, Katrina Kaif
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