Mamaearth, the D2C unicorn, experienced a tepid response to its initial public offering (IPO) on the first day, as the issue was subscribed only 0.13 times.
According to BSE data, the issue garnered bids for 3.625 million shares, while there were 28.8 million shares on offer.
The portion designated for employees took the lead, with an oversubscription of 1.98 times by the end of the day. Employees submitted bids for 67,344 shares, surpassing the 34,013 shares available.
In contrast, the retail quota received a subscription of 0.34 times on the first day, as retail investors bid for 1.782 million shares, while 5.224 million shares were available. Qualified institutional buyers (QIBs) followed with bids for 1.543 million shares, compared to the 15.5 million shares offered, resulting in a subscription of 0.10 times for the QIB portion.
The non-institutional investors (NIIs) quota witnessed limited interest, with a subscription of 0.03 times. Out of the 7.872 million shares allocated for NIIs, they placed bids for 232,000 shares on the first day.
The IPO is scheduled to conclude on November 2.
The beauty and personal care brand has set the IPO price band between INR 308 to INR 324 and is aiming to raise up to INR 1,700 crore in capital at a valuation of nearly $1.2 billion through the market debut. On Monday, the company secured INR 765.2 crore from anchor investors through the allocation of 2.36 crore equity shares.
Read More: Honasa’s Mamaearth IPO attracts INR 765.2 Crore from anchor investors ahead of IPO launch
Also Read: Mamaearth IPO to open on October 31, price band announced at INR 308 to INR 324 per share
Mamaearth’s IPO consists of a primary offering of INR 365 crore worth of shares and a secondary component involving the sale of 4.12 crore shares.
Established in 2016 by the couple Ghazal and Varun Alagh, Honasa Consumer, the parent company of Mamaearth, offers a variety of beauty and personal care products under different brand names, including Aqualogica, The Derma Co., and Ayuga. The company also manages salons under the BBlunt and Dr. Sheths brands, distributing its products through both online marketplaces and traditional retail channels.