Mamaearth IPO: Your Guide to the Upcoming Investment Opportunity

Introduction:Mamaearth IPO

The Mamaearth IPO is generating a lot of buzz in the financial market. If you’re considering investing in this initial public offering, you’ll want to know all the essential details. In this blog, we’ll break down everything you need to know about the Mamaearth IPO, from its price range to its subscription status, and provide insights into the company behind the IPO.

Mamaearth IPO Overview

The Mamaearth IPO is a book-built issue with a total worth of Rs 1,701.00 crores. This issue consists of a fresh issue of Rs 365.00 crore and an offer for sale of 4.12 crore shares.

Important Dates

Bidding for the Mamaearth IPO opened on October 31, 2023, and will close on November 2, 2023. The allotment for the Mamaearth IPO is expected to be finalized on Tuesday, November 7, 2023. The tentative listing date for Mamaearth IPO on the BSE and NSE is Friday, November 10, 2023.

Price Band and Lot Size

The price band for the Mamaearth IPO is set at ₹308 to ₹324 per share. The minimum lot size for an application is 46 shares. Retail investors can start with a minimum investment of ₹14,904. For sNII, the minimum lot size investment is 14 lots (644 shares), amounting to ₹208,656, and for bNII, it is 68 lots (3,128 shares), amounting to ₹1,013,472.

IPO Reservation

The Mamaearth IPO offers a total of 52,516,742 shares, distributed as follows:

• 29.98% for QIB
• 14.99% for NII
• 9.99% for RII
• 0.06% for employees
• 44.97% for Anchor investors Retail investors will receive a minimum of 46 shares, while sNII and bNII will receive a minimum of 644 and 3,128 shares, respectively, in case of oversubscription.

Promoter Holding

Mamaearth’s promoters are Varun Alagh and Ghazal Alagh.

Anchor Investors

Mamaearth IPO raised Rs 765.20 crore from anchor investors, with the anchor bid date set on October 30, 2023.

About Honasa Consumer Limited

Honasa Consumer Limited (HCL) was founded in 2016 and provides beauty and personal care products through its digital platform. The company is built on the values of Honesty, Natural ingredients, and Safe care and has grown several consumer brands, including Mamaearth, The Derma Co., Aqualogica, Dr. Sheth’s, and Ayuga. HCL has recently acquired shares in BBLUNT and the content platform Momspresso, positioning itself to become a $1 billion company. Its product portfolio includes baby care, face care, body care, hair care, color cosmetics, and fragrances.

Financial Information

HCL’s revenue increased by 57.13%, but profit after tax (PAT) dropped by -1145.25% between the financial years ending on March 31, 2023, and March 31, 2022.

Objects of the Issue

The net proceeds from the Mamaearth IPO will be used for various purposes, including advertisement expenses, capital expenditure for setting up new EBOs, investment in the subsidiary Bhabani Blunt Hairdressing Private Limited (“BBlunt”) for setting up new salons, and general corporate purposes.

Mamaearth IPO Review

Analysts suggest that Mamaearth has shown fast growth in the past five years with over 65% EBITDA margins and is poised for bright prospects ahead. However, the issue is considered aggressively priced, and investors should weigh the potential returns carefully.

Subscription Status

As of November 1, 2023, the Mamaearth IPO is subscribed 0.15 times. The retail category is leading with a subscription of 0.43 times, followed by QIB at 0.10 times and NII at 0.04 times.

Conclusion

The Mamaearth IPO offers an exciting investment opportunity in the beauty and personal care industry. However, potential investors should carefully evaluate the company’s financials and consider their investment horizon before participating in the IPO. Make sure to do your research and consult with financial experts to make an informed decision.