October 23, 2023
New Delhi, India
Honasa Consumer Readies for a Dynamic Rs 1,700 Crore IPO in October 2023
India’s vibrant consumer market is abuzz with excitement as Honasa Consumer, the parent company of the renowned Mamaearth brand, is set to unveil its much-anticipated initial public offering (IPO). This IPO, slated for October 2023, is primed to create waves by aiming to secure Rs 1,700 crore in funding. Let’s delve into the core facets of this eagerly awaited development.
A Dynamic Portfolio of Brands Under Honasa Consumer
Honasa Consumer stands as the driving force behind a suite of thriving direct-to-consumer (D2C) brands in the beauty and personal care domains. In addition to the iconic Mamaearth, it houses The Derma Co and BBLunt within its diverse brand lineup. Notably, this portfolio was bolstered by the acquisition of BBLunt from Godrej Consumer Products, a deal valued at Rs 134 crore and executed in February 2022.
IPO Framework: A Blend of Fresh Shares and Offer for Sale
The proposed IPO’s structure combines a fresh issue of shares, amounting to Rs 400 crore, with an Offer for Sale (OFS) that has the potential to include up to 46.80 million equity shares.
High Demand Fuels Enthusiasm
Market insiders are rife with anticipation regarding the Honasa Consumer IPO. The IPO window is set between October 31 and November 2, with the anchor section ready to initiate on October 30. Remarkably, there are no plans for a pre-IPO round at present.
Today’s Market Highlights: Indian stock market
Ownership Dynamics and Shareholding
At present, the founders of Honasa Consumer, a husband-wife team, maintain a collective stake of 43.54 percent in the company. Another significant stakeholder is Peak XV Partners, possessing 20.94 percent ownership. Following suit are Fireside Ventures and Stellaris with 15.01 percent and 11.24 percent, respectively. Importantly, Peak XV Partners has opted out of the OFS.
The notable exception in the OFS lineup is Sequoia Capital, now rebranded as Peak XV Partners. They have chosen to retain their entire shareholding in the company. Post-IPO, the founders are expected to retain a majority of their shares, surpassing the 97 percent mark.
Brand Expansion and Aspirational Valuation Goals
Honasa Consumer’s journey unfolds with strategic acquisitions, including Momspresso and BBLunt, which have broadened its product offerings. Additionally, the company ventured into the realm of color cosmetics and unveiled a hydration-focused skincare brand called Aqualogica.
With its sights set on an ambitious valuation of approximately Rs 10,500 crore, Honasa Consumer is positioned as a significant contender within the Indian consumer segment.
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