Honasa Consumer Ltd, which owns new-age FMCG brands such as Mamaearth and The Derma Co, on Thursday fixed a price band of Rs 308 to Rs 324 per share for its Rs 1,701-crore initial public offering (IPO). As PTI reported, the issue will open for public subscription on October 31 and conclude on November 2 and the anchor book of the offer will be opened for a day on October 30, the company has said.
According to the report, 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. At the upper end of the price band, the IPO is expected to fetch Rs 1,701.44 crore. Those offering shares in the OFS include promoters, Varun Alagh and Ghazal Alagh, and investors such as 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.
About 75 per cent of the issue has been reserved for qualified institutional investors, 15 per cent for non-institutional investors, and the remaining 10 per cent for retail investors. Further, investors can bid for a minimum of 46 equity shares and in multiples thereof.
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.
The Gurugram-based beauty and personal care company was founded in 2016 by the 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 had entered the unicorn club.
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.