Honasa Consumer, the parent company of direct-to-consumer beauty brand Mamaearth, is planning to launch its much-awaited initial public offering (IPO) to raise about Rs 1,950 crore at the upper end of the price band as soon as next week, according to market sources. “The IPO is expected between October 31 and November 2, and will likely have a price band of Rs 345-355,” one of the sources told FE on condition of anonymity.
Honasa Consumer, which also owns beauty and personal care brands such as The Derma Co, Aqualogica and Dr. Sheth’s, had filed its draft red herring prospectus in December last year and received a regulatory nod from Sebi in August. When contacted, the company declined to comment.
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The IPO will include fresh issue of equity shares worth Rs 400 crore and an offer-for-sale of up to 46.8 million shares, as per its draft filing.
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The OFS will see participation from promoters Varun Alagh and Ghazal Alagh, and investors, including Fireside Ventures, Evolvence India, Sofina, Stellaris Venture Partners, Snapdeal’s Kunal Bahl and Rohit Bansal, actress Shilpa Shetty Kundra, and Rishabh Mariwala of Sharrp Ventures. It also counts Peak VX Partners (formerly Sequoia Capital India) as its investor.
The company had previously said it plans to use the proceeds from the IPO for marketing expenses, capex for exclusive brand outlets, for setting up new salons for its subsidiary BBlunt, and for acquisitions and general expenses.
Mamaearth has a fast-growing presence in the digital-first beauty and personal care category, and has doubled down on expanding its offline distribution in the past year. It has exclusive brand outlets in malls across the country and in popular shopping areas, besides being available through several retail partners.
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“As of September 30, 2022, our flagship brand, Mamaearth, has emerged as the fastest growing BPC brand in India to reach an annual revenue of Rs 1,000 crore (in the preceding 12 months) within six years of launch,” Honasa said in its draft filings.
The company, which entered the unicorn club last year, has raised $126 million till date with a valuation of $1.05 billion, as per Tracxn. In FY22, the company’s revenue had doubled to Rs 952 crore with a net profit of Rs 19.8 crore.
