WomanCart shares list at 43% premium

The stock of WomanCart Ltd, a Delhi-based company, experienced a sharp surge of nearly 43 percent on its October 27 debut, after the initial public offering was subscribed more than 30 times last week.

Initially opening at Rs 117, the stock experienced an uptrend of 5 percent, reaching a high of Rs122.85 at 10.20 am on the National Stock Exchange (NSE).

The IPO, which took place between October 16 and October 18, raised Rs 9.56 crore by issuing 11.12 lakh shares, with the issue price being Rs 86.

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Retail investors were more willing to invest in the offering than high-networth individuals (HNIs), with retail investors purchasing 46.48% of the allotted portion for them, whereas HNIs offered 16.67% of the allocated quota.

The offer only includes a new issue component from the company. The majority of the net new issue proceeds are expected to be used for branding and marketing initiatives, the development of applications, working capital needs, and corporate purposes.

The book-running and registrar of the issue are Nurnolia Financial Services, and the market maker is Nikunj Securities.

WomanCart will use the net proceeds from the IPO for branding and marketing, app development, and funding working capital requirements. The remaining amount will be used for general corporate purposes.

Veena Pahwa is the promoter of the company. Pre-issue, promoter and promoter group held 78.01% stake and post-issue their stake will come down to 57.4%.

WomanCart is an online platform which offers a broad range of beauty brands and wellness products for skin care, hair care, and body care. The company offers more than 100 skincare brands to its consumers and has an offline store in Shalimar Bagh, Delhi opened in April 2022.

The firm for FY23 reported a revenue of Rs 8.74 crore compared to Rs 4.23 crore a year ago. Net profit for the year stood at Rs 0.47 crore against Rs 0.20 crore a year ago.