On the second day of Mamaearth’s initial public offering (IPO), the direct-to-consumer (D2C) unicorn saw an increased interest from investors as its public issue garnered a subscription of 0.7 times. The offering received bids for 2.01 crore shares, surpassing the 2.88 crore shares available for subscription.
On the first day, the subscription rate for the issue was a modest 0.13 times.
Read More: Mamaearth IPO receives lukewarm response, subscribed 0.13 times on day one
Qualified institutional buyers (QIBs) exhibited substantial interest in the issue, surpassing their reserved quota by 1.02 times on the second day. Bids for 1.61 crore shares were placed against the 1.57 crore shares available for this category, with Mamaearth allocating the largest number of shares for QIBs.
Concurrently, the segment designated for retail investors experienced a subscription rate of 0.62 times, as it received bids for 32.34 lakh shares in comparison to the 52.48 lakh shares that were available for subscription.
The employee allocation remained at the forefront, surpassing expectations with an oversubscription rate of 3.19 times. It garnered bids for 1.08 lakh shares, significantly exceeding the 34,013 shares that were made available for subscription.
Non-institutional investors (NIIs) submitted bids for 6.89 lakh shares against the reserved 78.72 lakh shares designated for them. This category experienced the lowest subscription rate at 0.09 times.
The public offering is scheduled to conclude on November 2nd.
Mamaearth has established a price range of INR 308 to INR 324 for its public offering. The beauty and personal care brand aims to generate a maximum of INR 1,700 crore in funds from the IPO, valuing the company at $1.2 billion.
Read More: Mamaearth IPO to open on October 31, price band announced at INR 308 to INR 324 per share
Mamaearth’s public offering includes a fresh share issue amounting to INR 365 crore and an offer for sale (OFS) component of 4.12 crore shares.
Earlier, Mamaearth garnered INR 765.2 crore from anchor investors by allocating 2.36 crore shares.
Read More: Honasa’s Mamaearth IPO attracts INR 765.2 Crore from anchor investors ahead of IPO launch
Established in 2016 by the husband-wife team of Varun and Ghazal Alagh, Honasa Consumer, the company behind Mamaearth, offers a diverse array of beauty and personal care products through brands like Mamaearth, The Derma Co., Ayuga, Aqualogica, and Dr. Sheth’s. Additionally, it owns and operates a network of salons known as BBlunt, which it acquired in the early part of last year.
