Mamaearth IPO update 2023  

Mama earth ipo

Mamaearth is one the most famous brands in India you must know about this brand because the company spends a lot of money on its advertisements it’s a brand of Beauty and Personal Care Products. The company was incorporated in 2016, and its parent company is Honasa Consumer. 

Varun and Ghazal Alag started the Mamaearth Company When they used the product for their child, they realized that the product contained a lot of harmful ingredients and to solve this problem they started their own company called Mamaearth. 

Mamaearth IPO Dates 

Mamaearth IPO opened on Tuesday, October 31, 2023. IPO will close on Thursday, November 2, 2023. The allotment will be declared on Tuesday, November 7, 2023. 

Refunds will start on Wednesday, November 8, 2023.  Shares will be credited to demat on Thursday, November 9, 2023, and the listing date will be published on Friday, November 10, 2023 
Cut-off time for UPI mandate confirmation on November 2, 2023, 5 PM. 

The price band for per share of Mamaearth is 308 to 324 per share. If you apply for the HNI category then you have to apply for 324 band and retail 308 band  The total size of the IPO shares is 1701.00 Cr.out of which 365 crore is a fresh issue. 

Profits of Mamaearth 

In the financial year 2020, Mamaearth bore a loss of a huge amount of 428 crores. Ithe n fiscal year 2,021 the company’s loss was 1332 crores and in 2022 there was a minor profit of just 14 crores and in 2023 there was a loss of 150 crores. In June 2023 the company managed to get a profit of 24.72 crores. 

Why is Mamaearth so popular? 

Mamaearth is so popular because this company spends a lot on advertising, due to which Mamaearth is very popular among the people.  Mamaearth spent money on 3900 influencers to advertise its products. 

ROAS (Return on Advertisements Spend) of Mamaearth 
In 2020 sales of 110 crores Advertisement expense 47 crores ROAS was 2.39 

In 2021 sales of 460 crores Advertisement expense 178 crores ROAS was 2.58 

In 2022 sales of 684 crores Advertisement expense 272 crores  ROAS was 2.51. 

ROAS explained, if Companies expenses are 100 rupees and if after spending 100 rupees, the company makes 250 rupees its ROAS is 2.5  

How did Mamaearth become so successful? 

Mamaearth found the gap in the market for chemical-free products and met the demands of the consumer, spending a lot of money on their product advertisement company became very popular, and hence Mamaearth became successful. 

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