Mamaearth's Parent Company Honasa Consumer Set to Raise Rs 1,701 Crore in IPO
Honasa Consumer, the company behind the popular personal care brand Mamaearth, is set to launch its initial public offering (IPO) from October 31 to November 2. The company aims to raise Rs 1,701 crore from the market by valuing it at Rs 10,425 crore.
IPO Details
The IPO includes a fresh issuance of shares worth up to Rs 365 crore and an offer for sale (OFS) of about 4.12 crore shares. The price band for the IPO has been set at Rs 308-324 per share.
The bid lot size has been fixed at 46 shares per lot, which implies that the minimum bid lot amount in the retail category would be Rs 14,904. About 10% of the issue size has been reserved for retail investors, 15% has been allocated to the high net worth individuals (HNIs) while the remaining 75% is reserved for qualified institutional buyers (QIB).
Shareholding Pattern
Honasa promoter Varun Alagh will sell 3,186,300 shares while his wife Ghazal Alagh will sell up to 100,000 shares in IPO. Other shareholders who would be selling stake in the OFS include Kunal Bahl, Shilpa Shetty Kundra, Rishabh Harsh Mariwala, Fireside Ventures Fund, Sofina, Stellaris and Rohit Kumar Bansal.
Listing and Allotment
The stock will get listed on both National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on November 10. The finalisation of the basis of allotment is likely to be done by November 7.
Use of IPO Proceeds
Net proceeds from the IPO would be spent on advertisement expenses towards enhancing the awareness and visibility of brands, capital expenditure for setting up new Exclusive Brand Outlets (EBOs), to set up new salons under its subsidiary Bhabani Blunt Hairdressing, general corporate purposes and unidentified inorganic acquisition.
Financial Performance
In the June quarter, the company’s revenue from operations stood at Rs 464.49 crore, up 49% from a year ago. Net profit stood at Rs 9.24 crore, according to filings. In the year-ago quarter, the company had reported a loss of Rs 2.51 crore.
The company has attributed the year-on-year growth in quarterly operating revenue to higher sales under its flagship Mamaearth brand, which accounted for the bulk of its topline.
- In FY23, Honasa reported a net loss of Rs 150.97 crore.
- In the previous year, it had reported a net profit of Rs 14.44 crore.
- Its operating revenue, however, increased by 58% year-on-year to Rs 1,492.75 crore.
The consumer company derives a substantial majority of its revenue from operations from the sale of products under the flagship Mamaearth brand. Any decrease in demand for Mamaearth branded products could have an adverse effect on the business, cash flows and results of operations.