Mamaearth denies claims of IPO withdrawal, expects SEBI nod by next month

Indian skincare firm Mamaearth on Monday refuted the claims that it is withdrawing its initial public offering (IPO). In an interview with CNBC-TV18, the company's co-founder and chief executive officer (CEO) Varun Alagh said the company is moving ahead with its IPO plan.

Earlier in the day, a report by Reuters said that the company has delayed its IPO due to unfavourable market conditions. Mamaearth's parent company, Honasa Consumer Ltd, filed IPO documents in December 2022 with plans to raise between $200 million to $300 million through the issuance of new equity and an offer to sell some existing shares.

The company's valuation was estimated to be up to $3 billion.

The company is backed by investors such as Sequoia Capital, and Belgium's Sofina and is now in a "wait and watch mode", the Reuters report said, quoting sources. It was due to the turbulence in stock markets globally amid worries about the financial health of banks.

Alagh said that the reports were "baseless and unfounded". He added that the company expects Sebi's nod to its red herring prospectus by next month.

After the approval, Mamaearth will get 12 months to file the IPO. They will also be discussing the valuation of the company during that period.

Mamaearth is a skincare startup founded in 2016 by the couple Varun and Ghazal Alagh. The company has been focusing on India's thriving beauty and personal care market, which is anticipated to expand to $30 billion by 2026, with an annual growth rate of 12%, according to the IPO documents filed by Mamaearth.

As of January 2022, Mamaearth was valued at $1.2 billion, but the firm's IPO was delayed due to weak market conditions.