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Honasa Consumer Ltd. IPO attracts Capital Group and Fidelity International

EditorPollock Mondal
Published 01/11/2023, 06:44
© Reuters.

Honasa Consumer Ltd., the parent company of brands such as Mamaearth and The Derma Co., has seen a notable initial public offering (IPO) that was initiated on Monday, October 31. The company priced its shares between Rs 308–324 each, and by Tuesday morning, it had already been subscribed by 15%.

The public issue aims to raise over Rs 1,700 crore, with a fresh issue of Rs 365 crore worth of equity shares and an offer-for-sale of 4.12 crore equity shares by stakeholders. Notably, the company did not undertake any pre-IPO placement.

The funds raised from the IPO will be directed towards advertising and the creation of new Exclusive Brand Outlets. A portion will also be invested in subsidiary BBlunt for salon expansion. With the upper price band in play, Honasa Consumer's market cap is estimated at Rs 10,424 crore.

Ahead of the IPO, Honasa Consumer secured Rs 765.2 crore from anchor investors. Prominent among these are Capital Group and Fidelity International, demonstrating significant interest in the consumer goods company's public debut.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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