The Initial Public Offer (IPO) of Honasa Consumer was subscribed 7.61 times on the last day of subscription on Thursday. The Rs 1,701.44 crore IPO had a price range of Rs 308-324 a share.
Honasa Consumer intends to use the proceeds largely towards advertising expenses to enhance brand visibility. It also plans to deploy funds for capital expenditure to set up new Exclusive Brand Outlets and invest in its subsidiary, BBlunt, to set up new salons.
Honasa Consumer raised Rs 765.2 crore from anchor investors ahead of its IPO. The beauty and personal care company allotted 2.36 crore shares at Rs 324 apiece to 49 anchor investors.
The marquee investors include Capital Group (through Smallcap World Fund Inc., which was allocated the highest anchor allocation of 8.76%), Fidelity International, Norges Bank, Abu Dhabi Investment Authority, First Sentier (First State Investments), White Oak, Franklin Templeton, Kotak, DSP, Carmigniac Gestion, Loomis Sayles, Matthews, Pictet and Hornbill, and Goldman Sachs, among others.
The Gurugram-based beauty and personal care company was founded in 2016 by husband-wife duo Varun and Ghazal Alagh.
It began with the launch of Mamaearth and over the years added five more brands to its portfolio, including The Derma Co, Aqualogica, Ayuga, BBlunt, and Dr Sheth’s and built a ‘House of Brands’ architecture.
(With PTI inputs)