Mamaearth Shares See A Muted Debut On Stock Market, Get Listed At Just 2% Premium
Shares of Honasa Consumer, which operates the Mamaearth brand, listed at a premium of just 1.8% over the issue price on Tuesday. The stock got listed at Rs 330 on NSE as against the IPO price of Rs 324. Meanwhile, on BSE, it debuted at Rs 324.
After its much anticipated IPO was concluded last week, the shares of Mamaearth's parent company Honasa Consumer have finally been listed on India's stock exchanges today.
When Did Mamaearth Go For IPO?
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Mamaearth's IPO was launched from October 31st to November 2nd. Mamaearth. The stock got listed on BSE and NSE today (November 7, 2023).
How Have Mamaearth Shares Performed On Listing?
Mamaearth shares listed at a premium of just 1.8% over the issue price on Tuesday. The stock got listed at Rs 330 on NSE as against the IPO price of Rs 324. Meanwhile, on BSE, it debuted at the same price as the IPO one, i.e. Rs 324.
Ahead of the debut, the company's shares traded at a premium of Rs 22 in the unlisted market. Despite high valuations and mixed views from analysts, the public offer was subscribed 7.6 times at close, led by strong interest from institutional investors, as per an ET report.
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What Is Mamaearth's Value?
Analysts have said that most issues with high valuations in the recent past have struggled to deliver post-listing. Mamaearth is valued at Rs 10,425 crore in the post-issue market cap.
Proceeds from the listing will be used for advertising expenses, capital expenditure in setting up new exclusive brand outlets (EBOs), investment in its subsidiary BBlunt for opening new salons, and for general corporate purposes and unidentified inorganic acquisitions.
Also Read: Get Ready For 10 Big IPOs That Are Expected To Launch In Coming Months
Which Brands Fall Under Mamaearth's Parent Honasa Consumer?
Honasa Consumer, a beauty and personal care brand (BPC), has a product portfolio in the baby care, face care, body care, hair care, colour cosmetics and fragrances segment. It operates six brands ¨C Mamaearth, The Derma Co, Bblunt, Ayuga, Aqualogica and Dr Sheth.
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How Has Mamaearth Been Performing Financially?
Mamaearth had posted a loss of Rs 151 crore in FY23 against a profit of Rs 14.4 crore a year earlier. It had reported a 58% jump in its revenues to Rs 1,493 crore in the same period. As per the report, in the recent June quarter, its revenue from operations rose 49% year-on-year to Rs 464 crore. Net profit was at Rs 9.24 crore as against a loss of Rs 2.51 crore a year ago.
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