Honasa Consumer shares drop 5% following flat IPO listing By Investing.com

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<p>Shares of Honasa Consumer, the parent company of Mamaearth, continued their downward trend today, falling almost 5% due to profit booking. The stock has shed as much as 4.7% intra-day to its record low price of ₹307.</p>
<p>This follows the company’s initial public offering (IPO) which was held from October 31 to November 2, during which the company raised a total of ₹1,701 crore. The IPO was subscribed 7.61 times on the final day with subscription rates varying across different investor categories.</p>
<p>Despite the overall moderate subscription, Honasa Consumer debuted on the stock market on Wednesday, November 8, with a flat listing at ₹330 per share. The stock closed marginally above both the IPO price and listing price, despite not building significantly on early gains. </p>
<p>On the first day of trading, the stock listed at ₹330 per share on NSE and ₹324 per share on BSE, closing at ₹337.30 and ₹337.15 per share respectively. The circuit filter for the IPO was set at 20% above and below the listing price for the day.</p>
<p>However, Swastika Investmart’s Head of Wealth, Shivani Nyati, had suggested that the company is facing financial turbulence and operation-related risks which may have contributed to the stock’s downward trend.</p>
<p>In the lead up to its IPO, Honasa Consumer had raised a capital of ₹765.20 crore from anchor investors on Monday, October 30. Seven prominent mutual funds invested ₹253 crore in the Mamaearth IPO, receiving 33.1% of the anchor allocation.</p>
<p>Overall, despite a promising start with a slight premium over its IPO issue price and listing price, Honasa Consumer has seen its shares decline in value since its market debut.</p>
<p><em>This article was generated with the support of AI and reviewed by an editor. For more information see our T&amp;C.</em></p>
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