Shares of Honasa Consumer, the parent company of Mamaearth shares made lacklustre debut on bourses. The share debuted at Rs 330 on the NSE and Rs 324 on the BSE, as compared to the issue price of Rs 324. The investors have made a profit of Rs 6 per share as the scrip gave nearly 2% returns to investors on the listing. Ahead of the listing, Honasa shares’ grey market premium (GMP) rose 7.41%, over the upper end of the share price on offer, indicating a tepid debut on the bourses.
“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% 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. After receiving a decent subscription, Stock was able to give a positive listing. Investors are now suggested to book profit and exit their position,” said Shivani Nyati, Head of Wealth, Swastika Investmart.
Honasa Consumer (HCL) is a digital platform offering beauty and personal care products in over 500 Indian cities. It has grown popular brands like Mamaearth, The Derma Co, Dr Seth’s, Ayuga and Aqualogica. The company has also made strategic investments in BBLUNT and Momspresso. HCL’s product portfolio includes baby care, face care, body care, hair care, color cosmetics, and fragrances. Backed by prominent investors, HCL is poised to reach a $1 billion valuation.
