Mamaearth IPO subscribed 12% on first day

Investors purchased 36.07 lakh equity shares out of the total offer size of 2.89 crore shares.

Among these, retail investors showed interest in 34 percent of the shares allocated for them, while high-net-worth individuals acquired 3 percent.

The portion designated for qualified institutional buyers was subscribed at 10 percent.

Mamaearth's parent company, owned by Varun Alagh and his wife Ghazal Alagh, has allocated 75 percent of the net issue size for qualified institutional buyers, 15 percent for high-net-worth individuals, and the remaining 10 percent for retail investors.

The company's employees, with shares worth Rs 1 crore reserved in the IPO, have oversubscribed their allotted quota by 1.97 times.

The net issue, excluding the employee shares, is being offered.

Employees will receive their reserved shares at a discounted price of Rs 30 per share compared to the final issue price. The price range for the offer, which will close on November 2, is set at Rs 308-324 per share.

Honasa aims to raise Rs 1,701 crore through its inaugural public issue.

This comprises a fresh issuance of shares worth Rs 365 crore by the company itself, and an offer-for-sale (OFS) of 4.13 crore equity shares by a few shareholders, including Sofina, Stellaris, Kunal Bahl, Rohit Kumar Bansal, and Shilpa Shetty Kundra.

Out of the net fresh issue proceeds, the Gurugram-based direct-to-customer company plans to allocate Rs 182 crore for advertising expenses to enhance brand awareness and visibility, and Rs 20.6 crore for establishing new exclusive brand outlets (EBOs).