Honasa Consumer, the parent company of Mamaearth, is experiencing a decline in its grey market premium, with shares now commanding a premium of Rs 35-40 each. The company has set an expected official price band of Rs 330-360 per share for its upcoming initial public offering (IPO), which is slated to commence on October 31, 2023, and will remain open for subscriptions until November 2, 2023.
The IPO is being managed by an array of financial institutions including Kotak Mahindra Capital Company, Citigroup (NYSE:C) Global Markets India, Jm Financial, and JP Morgan India. It comprises a new share sale worth Rs 365 crore and over four crore equity shares being offloaded by existing promoters and shareholders.
The proceeds from the IPO will be channeled towards various corporate needs including advertising, capital expenditure, and investment in Bhabani Blunt Hairdressing. Honasa Consumer was established in 2016 and currently serves over 500 cities across India. Its product portfolio encompasses baby care, face care, body care, hair care, color cosmetics, and fragrances.
The company has not only cultivated several consumer brands internally but also recently acquired shares in BBLUNT and Momspresso. The firm's shares are set to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). This comes after Honasa Consumer achieved a $1.2 billion valuation following a $52 million fundraising round.
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