Honasa Consumer Ltd, which owns new-age FMCG brands such as Mamaearth and The Derma Co, is set to launch its Initial Public Offering (IPO) on October 31. The issue will conclude on November 2 and the anchor book of the offer will open for a day on October 30, according to the red herring prospectus.
The IPO comprises a fresh issue of equity shares worth Rs 365 crore and an Offer for Sale (OFS) component of 4.12 crore equity shares by promoters, investors, and other selling shareholders. Those offering shares in the OFS include promoters and founders, Varun Alagh and Ghazal Alagh, and investors like Fireside Ventures Fund, Sofina, Stellaris, Kunal Bahl, Rohit Kumar Bansal, Rishabh Harsh Mariwala, and Bollywood actor Shilpa Shetty Kundra.
Proceeds from the fresh issue would be utilised towards advertising expenses to improve awareness and brand visibility, setting up new exclusive brand outlets, investment in its subsidiary BBlunt for setting up new salons, general corporate purposes, and inorganic acquisition.
The Gurugram-based beauty and personal care company was founded in 2016 by husband-wife duo Varun and Ghazal Alagh. It began with the launch of Mamaearth and over the years added five more brands to its portfolio, including The Derma Co, Aqualogica, Ayuga, BBlunt, and Dr Sheth's, and built a 'House of Brands' architecture. In January 2022, the company entered the unicorn club.
Kotak Mahindra Capital Company, Citigroup Global Markets India, JM Financial, and JP Morgan India Pvt Ltd are the book-running lead managers to the issue. The equity shares of the company will be listed on the BSE and NSE.
Earlier, analysts have raised concerns about Mamaearth's IPO. From, a valuation of $1.2 billion in January 2022, the company was reportedly seeking a valuation of $3 billion through its IPO, which is more than 1,000x its profits, according to a Finacial Express report. It is being questioned by many. Some have compared the high valuation of the Mamaearth IPO to that of Paytm.