The initial public offering (IPO) of Honasa Consumer, led by Varun Alagh and Ghazal Alagh, opened today, receiving a 5% subscription rate by the afternoon. Retail investors accounted for 23% of their share allocation, while high net worth individuals secured only 1% of their allocation. Notably absent from the early subscribers were qualified institutional buyers, who hold a significant reservation of 75% of the net issue size.
Company employees demonstrated their confidence in the firm's prospects by subscribing to their allotment 1.49 times over, using ₹1 crore worth of shares specifically reserved for them.
The IPO is part of Honasa's ambitious plan to raise ₹1,701 crore ($227 million). This includes a fresh issuance worth ₹365 crore and an offer-for-sale (OFS) of 4.13 crore equity shares held by shareholders. Notable shareholders participating in the OFS include Sofina, Stellaris, Kunal Bahl, Rohit Kumar Bansal, and Shilpa Shetty Kundra.
The company intends to use part of the IPO proceeds for various strategic initiatives. These include funding advertisement expenses, establishing exclusive brand outlets (EBOs), and making investments in its subsidiary BBlunt.
Ahead of the public offering, Honasa had successfully raised ₹765.2 crore (INR100 crore = approx. USD12 million) from several anchor investors.
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