A Glimpse into the Upcoming IPO of Mamaearth’s Parent Company and Its Vision for Growth

Mamaearth’s parent company, Honasa Consumer, is poised for an extraordinary milestone as it prepares to launch its initial public offering (IPO) later this month. Here’s a closer look at the details.

The IPO, a combination of a fresh issue and an offer for sale, presents an exciting opportunity for investors. The fresh issue, valued at a substantial Rs 365 crore, is expected to invigorate the market. 

Owned and led by Varun & Ghazal Alagh, Honasa Consumer has meticulously planned its IPO debut for October 31, 2023. Investors eagerly anticipate the forthcoming announcement of the pricing range. The application window for this promising IPO will open until November 2, 2023, with the stock set to make its debut on November 10. 

The IPO is structured with both a Fresh Issue, encompassing new shares worth Rs 365 crore, and an Offer-for-Sale (OFS) comprising 4.68 crore equity shares. The OFS category will feature shares offered by the company’s promoters and investors. 

Notable personalities, including Varun Alagh, Ghazal Alagh, Fireside Ventures Fund, Sofina, Stellaris, Kunal Bahl, Rishabh Harsh Mariwala, Rohit Kumar Bansal, and Shilpa Shetty Kundra, are among the selling shareholders in the OFS. 

While the final price band and lot size of the shares are yet to be disclosed, this crucial information will be unveiled as the IPO opens on the last day of this month, October. 

Honasa Consumer has ambitious plans for the Net Proceeds from the IPO. It includes strategic allocations for boosting brand visibility through advertising, expanding its exclusive Brand Outlets (EBOs), investing in its subsidiary, Bhabani Blunt Hairdressing Private Limited, to establish new salons, and earmarking funds for general corporate purposes and potential acquisitions. 

The company’s dominance in the direct-to-consumer market is undeniable, holding a substantial market share of approximately 28.9% in the gross merchandise value. 

With a product portfolio spanning across various beauty and personal care categories, such as baby care, face care, body care, hair care, color cosmetics, and fragrances, Honasa Consumer received the green light from SEBI in August of the same year to proceed with its IPO plans. 

In terms of ownership, the promoters maintain a significant 37.41% stake in the company, with the remaining shares held by prominent investors, including Fireside Ventures Fund, PXV VI, Stellaris, Sofina, and Sequoia Capital. 

The equity shares will find their place on both the BSE and NSE stock exchanges. Leading merchant bankers, such as Kotak Mahindra Capital Company, Citigroup Global Markets India, JM Financial, and JP Morgan India, are overseeing this monumental offering. KFin Technologies has been entrusted as the registrar for the offer. 

Financial Performance:  

Business Overview: 

Honasa Consumer Limited operates as a digital platform offering a diverse array of beauty and personal care products. The company was established in 2016. 

Honasa Consumer’s core values revolve around integrity, the use of natural ingredients, and a commitment to safety in personal care. Currently, the company’s services reach over 500 cities across India. It has meticulously cultivated a portfolio of consumer brands, including Mamaearth, The Derma Co., Aqualogica, Dr. Sheth’s, and Ayuga. Furthermore, it has strategically invested in BBLUNT and the content platform Momspresso. Additionally, the company enjoys robust support from esteemed investors such as Sequoia Capital India, Sofina SA, Fireside Ventures, and Stellaris Venture Partners. 

Disclaimer: This blog is for educational purposes only. The mentioned securities are for example purposes and not recommendations. It is based on various secondary sources on the internet and is subject to change. Please consult an expert before making related decisions.