Mamaearth Shares Slump Over 5% Below IPO Issue Price; Details – News18

Last Updated: November 09, 2023, 15:33 IST

Mamaearth Share Price: Recently listed, shares of Mamaearth’s parent Hosana Consumer continued their downward trend, falling almost 5 per cent on Thursday, after a tepid listing on November 9.

Since its listing on Tuesday, November 7, the stock has been on a downward spiral and currently trading at a discount of 4.6 per centfrom the initial public offering (IPO) issue price of Rs 324.

The stock was listed at a premium of 2 per cent on the NSE at Rs 330 and the high for this stock has been Rs 340.45 on the intraday basis.

“Honasa Consumer, a leading Indian beauty and personal care (BPC) company, made its stock market debut today at Rs 330 per share, a premium of around 2 percent to its IPO price of Rs 324. The IPO was subscribed to 7.95 times, which is a good subscription level. While Honasa Consumer is still a relatively young company, it has quickly grown to become a major player in the Indian BPC market. The company has a diverse product portfolio that includes face care, baby care, hair care, body care, color cosmetics, and fragrances. However, the financial condition of the company is facing some turbulence, and there are other operation-related risks as well,” suggested Shivani Nyati, Head of Wealth, Swastika Investmart.

After receiving a decent subscription, Stock was able to give a positive listing. Investors are now suggested to book profit and exit their position.

The Honasa Consumer IPO was open between October 31 and November 02 and the price band was set in the range of Rs 308-324 apiece with a lot size of 46 shares. The IPO raised a total Rs 1,701 crore, which included a fresh issue of Rs 365 crore and an offer-for-sale (OFS) of up to 4.12 crore equity shares.

The IPO has been subscribed 7.61 times on day 3. Mamaearth IPO retail investors portion was subscribed 1.35 times, the NII portion was subscribed 4.02 times, and Qualified Institutional Buyers (QIB) portion was booked 11.50 times, and the employee portion was subscribed 4.87 times.

It also raised a capital of Rs 765.20 crore from anchor investors on Monday, October 30. Seven prominent mutual funds invested Rs 253 crore in the Mamaearth IPO, receiving 33.1% of the anchor allocation

Disclaimer:Disclaimer: The views and investment tips by experts in this report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

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