Mamaearth parent Honasa Consumer to raise ₹1,701 cr from capital market, IPO opens on Oct 31. Skin and haircare products brand Mamaearth’s parent Honasa Consumer Limited, the largest digital-first beauty and personal care (BPC) company in India, has announced a ₹1,701-crore initial public offering (IPO) in the price band of ₹308 to ₹324 per share with a face value of ₹10 each.
Mamaearth IPO opens for subscription on Tuesday, October 31, and closes on Thursday, November 2. The allocation to anchor investors for Honasa Consumer IPO is scheduled to take place on Monday, October 30.
Bids can be made for a minimum of 46 equity shares and in multiples of 46 shares thereafter.
The offering comprises a fresh issue of equity shares amounting to ₹365 crore, alongside an Offer for Sale (OFS) of up to 41,248,162 equity shares by various stakeholders, including promoters, founders, and investors.
Existing investors Fireside Ventures, Stellaris Venture Partners, Sofina Ventures, as well as high net-worth individuals Kunal Bahl, Rishab Mariwala, Rohit Bansal, and Shilpa Shetty will be selling some of their shares through the IPO.
Mamaearth IPO floor price is 30.80 times the face value of the equity shares and the cap price is 32.40 times the face value of the equity shares.
Mamaearth IPO has reserved not less than 75% of the shares in the public issue for Qualified Institutional Buyers (QIB), not more than 15% for Non Institutional Investors (NII), and not more than 10% of the offer is reserved for Retail Investors. A discount of ₹30 per equity share is being offered to eligible employees bidding in the employee reserve portion.
Mamaearth IPO consists of an offer for sale (OFS) of around 4.12 crore shares and a new share issuance of up to ₹365 crore. The IPO will see the sale of 3,186,300 shares by Honasa promoter Varun Alagh and up to 100,000 shares by his wife Ghazal Alagh. A number of other shareholders, including Kunal Bahl, Shilpa Shetty Kundra, Rishabh Harsh Mariwala, Fireside Ventures Fund, Sofina, Stellaris, and Rohit Kumar Bansal, will be selling their stakes in the OFS.
Speaking about the company’s launch, Honasa Consumer Chief Innovation Officer Ghazal Alagh said, “My hubby Varun Alagh and myself have decided to make and sell toxin-free products for children when we could not find these in India for our son Agastya back in 2016. Thus was born Honasa Consumer that introduced Mamaearth toxin-free products for babies and young mothers in recyclable packs as an online-first brand.”
Now, the company has six well-known brands under its umbrella — Mamaearth, Aqualogica, BBlunt, The Derma Co, Dr Sheth’s, Ayuga, and Momspresso
The company intends to use the net proceeds to finance the following goals: advertising costs to raise the company’s brands’ exposure and awareness; The amount of capital that the company will need to build up new EBOs; Financial support for the establishment of new salons by the company’s subsidiary, Bhabani Blunt Hairdressing Private Limited (BBlunt); general corporate objectives; and an unidentified inorganic acquisition.
The company has turnaround in the Q1-FY 2024 reporting net profit of Rs 24.71 crore against Rs 11. 52 crores in Q1-FY 2023 and FY 2023 net loss of Rs 151 crores.
The book running lead managers of the Honasa Consumer IPO are Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, Jm Financial Limited, and J.P. Morgan India Private Limited. The registrar of the offering is Kfin Technologies Limited.
On Tuesday, November 7, the allocation for the Honasa Consumer IPO is anticipated to be completed. Honasa Consumer IPO is scheduled to list on the BSE and NSE, with a tentative listing date of Friday, November 10.
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