The Honasa Consumer IPO was subscribed 11 percent by the afternoon on October 31, the first day of bidding, with investors buying 32.52 lakh equity shares against offer size of 2.89 crore shares.
Retail investors have put in bids for 28 percent shares of the portion set aside for them, and non-institutional investors have bought 2 percent shares of the reserved portion, while the part reserved for qualified institutional buyers was subscribed 10 percent.
The beauty and personal care brand Mamaearth’s parent firm has reserved 75 percent of the net issue size for qualified institutional buyers, 15 percent for high networth individuals and the remaining 10 percent for retail investors.
Employees will get the reserved shares at a discount of INR 30 per share to the final issue price.
The price band for the offer, which will close on November 2, has been fixed at INR 308-324 per share.
Varun Alagh and his wife Ghazal Alagh-owned Honasa aims to raise INR 1,701 crore via maiden public issue that comprises a fresh issuance of shares worth INR 365 crore and an offer-for-sale (OFS) of 4.13 crore equity shares by few shareholders including Sofina, Stellaris, Kunal Bahl, Rohit Kumar Bansal, and Shilpa Shetty Kundra.
Of the net fresh issue proceeds, the Gurugram-based company will allot 182 crore for its advertisement expenses towards enhancing the awareness and visibility of the brands, and INR 20.6 crore for setting up new exclusive brand outlets (EBOs).
Further, it will invest INR 26 crore in its subsidiary, BBlunt for setting up new salons. And the remaining part of the proceeds will be used for general corporate purposes and unidentified inorganic acquisition.
On October 30, a day before the issue opening, Honasa already mopped up INR 765.2 crore from several anchor investors including Smallcap World Fund Inc, Fidelity Funds, Abu Dhabi Investment Authority, according to a moneycontrol report.
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