Honasa Consumer Ltd, the holding company of the D2C unicorn Mamaearth, closed the trading session on Tuesday (November 7) at INR 337.15 on the BSE, marking a 4.06% increase from its listing price.
The new-age technological startup had a relatively uneventful debut on the Indian bourses today. With its shares opening at a 2% premium at INR 330 on the NSE, Mamaearth’s shares began trading at INR 324 on the BSE.
Read More: Mamaearth marks its entry on NSE with nearly 2% premium debut
The IPO’s price band was established between INR 308 and INR 324.
Mamaearth’s stock surged nearly 5% to reach INR 340 in intraday trading, before retracting some of the gains and eventually settling at a 4% increase above the IPO price.
On the NSE, the shares concluded the trading session at INR 337.3, marking a 2.21% increase from the listing price.
Mamaearth’s current market capitalization is $1.3 billion.
Established in 2016 by Ghazal and Varun Alagh, Honasa Consumer operates multiple beauty and personal care brands such as Mamaearth, The Derma Co., Ayuga, Aqualogica, and Dr Sheth’s. The company submitted its draft red herring prospectus (DRHP) in December of the previous year.
The IPO experienced an oversubscription of 7.61 times, primarily driven by significant demand from qualified institutional buyers (QIBs).
The initial offering consisted of newly issued shares valued at INR 365 crore along with an offer for sale (OFS) component of 4.12 crore shares. Nonetheless, the company’s FY23 loss of INR 151 crore has sparked concerns in certain circles regarding the stock’s prospects in the near to medium term.
At the same time, early investors in the company, several of whom opted for the OFS route to sell their shares, reaped substantial profits from the IPO.
Rohit Bansal and Kunal Bahl, the cofounders of Snapdeal, gained close to 101 times returns on their initial investment at the higher end of the IPO listing price, INR 324. Meanwhile, actor Shilpa Shetty realized returns of approximately 7.74 times on her investment.
Conversely, Mamaearth marks Peak XV’s fourth investment in the country within the last six months since its separation from Sequoia, known to potentially yield returns of 10 times or more.