Mamaearth IPO opens tomorrow: GMP, price band, review, here are 10 key things to know about the offer

Honasa Consumer was established on the principles of safety, natural ingredients, and honesty, presently provides services in more than 500 Indian cities. The business has developed a number of consumer brands internally, such as Dr. Sheth’s, Ayuga, Aqualogica, Mamaearth, and The Derma Co. It recently purchased stakes in Momspresso, a content platform, and BBLUNT.

As per report,  Honasa Consumer is well-positioned to grow into a $1 billion business with the backing of Sequoia Capital India, Sofina SA, Fireside Ventures, and Stellaris Venture Partners.

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Mamaearth IPO floor price is 30.80 times the face value of the equity shares and the cap price is 32.40 times the face value of the equity shares.

The company saw a turnaround in Q1-FY 2024, earning a net profit of ₹24.71 crore compared to a net loss of ₹151 crores in FY 2023 and ₹11. 52 crores in Q1-FY 2023.

The gross profit margin of 17.03 % in Q1-FY 2024 allows a high profit poll to leverage as cost efficiency set in

Also Read: Mamaearth IPO: Company reveals the reason for reducing issue size

As per red herring prospectus (RHP), the company’s comparable listed peer are Hindustan Unilever Ltd (with P/E of 59.16), Colgate Palmolive (India) Ltd (with P/E of 54.25), Procter & Gamble Hygiene and Health Care Ltd (with P/E of 83.12), Dabur India Ltd (with P/E of 54.53), Marico Ltd (with P/E of 54.28), Godrej Consumer Product Ltd (with P/E of 59.09), Emami Ltd (with P/E of 34.82), Bajaj Consumer Care Ltd (with P/E of 25.65), and Gillette India Ltd (with P/E of 57.82).

Also Read: Shilpa Shetty set to earn ₹15.65 crore as Mamaearth IPO hits market

Here are the 10 key things to know about Mamaearth IPO: 

Mamaearth IPO date: Mamaearth IPO opens for subscription on Tuesday, October 31, and closes on Thursday, November 2.

Mamaearth IPO price: Mamaearth IPO has set the price band for its issue at ₹308-324 per equity share of face value of ₹10 each.

Mamaearth IPO anchor investors: The allocation to anchor investors for Honasa Consumer IPO is scheduled to take place today (Monday, October 30).

Mamaearth IPO lot size: Mamaearth IPO lot size is 46 equity shares and in multiples of 46 equity shares thereafter.

Also Read: Mamaearth IPO: Honasa Consumer sets price band at ₹308-324 a share

Mamaearth IPO details: Mamaearth IPO consists of an offer for sale (OFS) of around 4.12 crore shares and a fresh share issuance of up to ₹365 crore. The company expects to raise about ₹1701.44 crore on the upper price band. As a result, the company was valued at ₹10424.53 crore.

Mamaearth IPO reservation: Mamaearth IPO has reserved not less than 75% of the shares in the public issue for Qualified Institutional Buyers (QIB), not more than 15% for Non Institutional Investors (NII), and not more than 10% of the offer is reserved for Retail Investors. A discount of ₹30 per equity share is being offered to eligible employees bidding in the employee reserve portion.

Lead Manager and Registrar of Mamaearth IPO: The book running lead managers of the Honasa Consumer IPO are Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, JM Financial Limited, and J.P. Morgan India Private Limited. The registrar of the offering is Kfin Technologies Limited.

Mamaearth IPO listing date and allotment details: On Tuesday, November 7, the allocation for the Honasa Consumer IPO is anticipated to be completed. Honasa Consumer IPO is scheduled to list on the BSE and NSE, with a tentative listing date of Friday, November 10.

Mamaearth IPO GMP today: Mamaearth IPO GMP today or grey market premium is +7, similar to the previous session. This indicates Mamaearth share price were trading at a premium of ₹7 in the grey market on Monday, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Mamaearth share price was indicated at ₹331 apiece, which is 2.16% higher than the IPO price of ₹324.

Mamaearth IPO Review: “The company has posted fast growth in the last five years with over 65% EBITDA margins and is poised for bright prospects ahead. It enjoys asset light model of business. It is now considering offline marketing with its own outlets and will continue to launch more products in coming years. Based on annualized FY24 earnings, the issue is aggressively priced discounting all near term positives. Perhaps the company is abstracting fancy valuation for its proven track record so far. Well-informed investors may consider parking moderate funds for medium to long term rewards,” said Dilip Davda, the contributing editor at Chittorgarh.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Updated: 30 Oct 2023, 07:16 PM IST