Promoter Varun Alagh increased his holding in Honasa Consumer, the company behind Mamaearth, by buying about 1.85 million shares in a ₹50 crore bulk deal.
Deal Overview
Alagh bought the shares from Fireside Ventures at ₹270 each, just a 0.6% premium over the previous closing price of ₹268.45. Before the purchase, he owned 31.88% of Honasa; after the deal his stake rose to roughly 31.94%.
Fireside Ventures reduced its holding from 1.93% to about 1.36% after selling the shares.
Share Price Reaction
Following the announcement, Honasa’s stock closed at ₹276.20, up almost 3% from the previous day.
The shares, listed in November 2023, are still trading below their IPO price of ₹324 and have shown a 1‑year beta of around 1.1, indicating slightly higher volatility than the market.
Company Performance
- Q2 FY26 profit: Net profit of ₹39 crore, a turnaround from a loss of ₹18 crore a year earlier.
- Revenue growth: Like‑for‑like revenue reached ₹566 crore, up 22.5% YoY; operating revenue was ₹538 crore, up 16% YoY.
- Drivers: Strong sales in core categories and continued product innovation.
Implications for Investors
The bulk purchase shows confidence from the promoter, which could be a positive signal for retail investors. However, the stock remains below its IPO level and can be volatile, so investors should weigh the recent profit improvement against market risk.
Disclaimer
Remember, this is perspective, not prediction. Do your own research before making any investment decisions.