MamaEarth IPO Lists on a Weaker Note, Not Much Gain for Investors on Day 1

Honasa Consumer, parent company of Mamaearth, had a subdued market entry on November 7. Shares started at Rs 330 on NSE and Rs 324 on BSE, just 2% above the issue price.

Despite oversubscription, retail investors were cautious, subscribing only 1.4 times their quota. The firm reported a net loss of Rs 150.9 crore in FY23 due to an impairment loss, in contrast to a Rs 14.4 crore profit the previous year.

Although volume growth slowed, revenue from operations saw a CAGR of 80.14% from FY21 to FY23. Mamaearth's parent attracted interest from prominent names, but retail investors showed less enthusiasm.

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