Mama Earth to Launch ₹1700 Cr IPO on October 31, 2023
Honasa Consumer Private Limited, the parent company of renowned brands like Mamaearth, The Derma Co, and BBlunt, is gearing up to launch one of the most eagerly awaited Initial Public Offerings (IPOs) in the Indian consumer segment. This rapidly growing direct-to-consumer (D2C) firm, known for its presence in the beauty, baby care, and skincare sectors, made headlines as the first unicorn of 2022. This status was confirmed when it secured $52 million in funding, valuing the company at $1.2 billion during a fundraising round in January 2022. The IPO is scheduled to launch on October 31, following regulatory approval from the Securities and Exchange Board of India (SEBI) in August 2023, subsequent to the submission of draft papers in December 2022.
Honasa Consumer Private Limited was co-founded in 2016 by the husband-wife duo, Varun and Ghazal Alagh, who gained recognition on the popular show 'Shark Tank.' Their journey led Honasa to become a unicorn
The IPO Plans
As per information disclosed in the Draft Red Herring Prospectus (DRHP), Honasa Consumer intends to raise approximately Rs 1,700 crore through a combination of a fresh issue and an offer-for-sale (OFS). Shareholders who will reduce their holdings in this IPO include the Alagh couple themselves, along with Sofina Ventures SA, Evolvence, Fireside Ventures, Stellaris Venture Partners, Kunal Bahl (founder of Snapdeal), Bollywood actress Shilpa Shetty Kundra, Rishabh Harsh Mariwala, and Rohit Kumar Bansal. Sequoia Capital has opted not to engage in the Offer-for-Sale (OFS).
Honasa Consumer's journey began with a focus on direct-to-consumer retailing, and they subsequently expanded to online marketplaces. Now, the company is strategically working to increase its presence in the offline market, they are also collaborating with local partners to facilitate Mamaearth's international expansion into countries like Bangladesh, Malaysia, Vietnam, and Thailand.
As of now, the co-founding husband-wife duo collectively owns 43.54% of the company's stake. Another major shareholder is owned by XV Partners (formerly Sequoia Capital), which possesses 20.94%. Fireside Ventures and Stellaris own 15.01% and 11.24%, respectively, and Peak XV Partners will not be partaking in the OFS.
In a statement from March, Honasa's CEO, Varun Alagh, confirmed that the company's largest investor, Sequoia Capital (rebranded as Peak XV Partners in July), would not be selling any shares in the IPO. This means the founders are expected to own more than 97% of their shares post IPO.
Honasa Consumer IPO Tentative Timeline
Investors must keep in mind these important dates when applying for an IPO.
|IPO Open Date||Tuesday, October 31, 2023|
|IPO Close Date||Thursday, November 2, 2023|
|Allotment Date||Tuesday, November 7, 2023|
|Initiation of Refunds||Wednesday, November 8, 2023|
|Credit of Shares to Demat||Thursday, November 9, 2023|
|Listing Date||Friday, November 10, 2023|
This table provides a concise overview of key financial metrics over the past three fiscal years, showcasing the company's performance
|31 Mar 2022||31 Mar 2021||31 Mar 2020|
|Profit After Tax||14.55||-1,332.21||-428.05|
Honasa Consumer's journey from inception to achieving unicorn status showcases the tremendous growth in the direct-to-consumer space. With the impending IPO, the company aims to fuel further expansion and innovation, setting the stage for an exciting future in the Indian consumer segment.
Share Market Today
|Indices Name||Price||Price Change (% change)|
|S&P ASX 200||7218.40||13.1 (0.18%)|
|CAC 40||7541.92||117.3 (1.58%)|
|Dow Jones||36247.87||130.49 (0.36%)|
|FTSE 100||7571.16||65.98 (0.88%)|
|Hang Seng||16321.03||-21.95 (-0.13%)|
|US Tech 100||14407.64||78.46 (0.55%)|
|Nikkei 225||32850.66||542.8 (1.68%)|
|S&P 500||4604.37||18.78 (0.41%)|
|Gift Nifty||21083.00||14 (0.07%)|
|Shanghai Composite||2969.56||3.35 (0.11%)|
|Taiwan Weighted||17383.99||105.25 (0.61%)|
|US 30||36259.00||-7 (-0.02%)|
About the Author
DisclaimerInvestment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
Premium listing for Marinetrans India IPO, then upper circuit
- Dec 08, 2023Read More
Strong listing for Net Avenue Technologies IPO, then lower circuit
- Dec 08, 2023Read More
India Shelter Finance Corporation Ltd was incorporated in 1998 and offers small and mid-ticket home loans. These loans are typically in the size of ₹5 lakhs to ₹50 lakhs. It provides home loans for construction, purchase, extension and also for renovation.
- Dec 08, 2023Read More