Mamaearth’s Parent Company, Honasa Consumer, Prepares for a Rs 1,700 Crore IPO

Australian Premium

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.

Also read today’s latest: Elon Musk Willing To Offer $1 Billion To Wikipedia But With a Condition…


CurrencyVeda provides this news article for informational purposes only. We do not offer investment advice or recommendations. Before making any investment decisions, please conduct thorough research, consult with financial experts, and carefully consider your financial situation, risk tolerance, and investment goals. Investing in the stock market carries risks, and it’s essential to make informed choices based on your individual circumstances. CurrencyVeda is not liable for any actions taken based on the information provided in this article.

Leave a Reply

Your email address will not be published. Required fields are marked *