At 1102 IST, the company’s shares were trading at Rs 287.45 on the National Stock Exchange (NSE). However, in early trade, the stock cracked and went as low as Rs 256.30—15% lower than the previous day’s close.
The latest market capitalisation of the company was Rs 9,248.61 crore but slipped to Rs 8,246 crore before recovering some losses. The company’s IPO valuation was around Rs 10,425 crore.
Honasa’s last private round in 2022 valued the omnichannel retailer at $1.2 billion, or around Rs 9,995 crore at Friday’s exchange rate.
On Tuesday, November 7, Honasa Consumer’s stock listed on the NSE at Rs 330 per share, a 2% premium over the issue price. However, following that, it has seen heavy selling on the markets.
The Honasa IPO opened on October 31 with a price band of Rs 308-324 per share and closed on November 2. Through the IPO, the company raised Rs 1,701 crore, which included a fresh issue of Rs 365 crore and an offer-for-sale component of up to 4.12 crore equity shares worth Rs 1,336 crore.
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ETtechPrior to the IPO opening for public subscription, Honasa Consumer had raised Rs 765.19 crore from anchor investors, including Abu Dhabi Investment Authority, Fidelity, Goldman Sachs, Capital Group and Norges Bank.
In an interview with ET on October 31, the company’s cofounder and chief executive Varun Alagh had advised against making a call on a company based on its short-term performance on the stock market. “If you’re trying to measure performance over 3-6 months, you should not … If you genuinely like a company, stay invested for a few years and measure our performance over the index, and that’s what one should hold the company accountable to,” Alagh had said.