📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Honasa Consumer shares drop 5% following flat IPO listing

EditorPollock Mondal
Published 11/09/2023, 04:38 AM
© Reuters.

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.

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.

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.

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.

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.

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.

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.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.