Business Standard

Honasa Consumer IPO to open on Oct 31; sets price band at Rs 308-324/share

The company said it is on the cusp of an increase in profitability trajectory with business model efficiency and operating leverage setting in

Ghazal Alagh, Chief Innovation Officer, Honasa Consumer Limited

Ghazal Alagh, Chief Innovation Officer, Honasa Consumer Limited

Peerzada Abrar Bengaluru

Listen to This Article

Honasa Consumer Limited (HCL), which owns brands like Mamaearth and The Derma Co, said it proposes to open on Tuesday, 31 October 2023, an initial public offer of equity shares of face value of Rs 10 each (equity shares) of the company.

The company has turned around in Q1-FY24, reporting a net profit of Rs 24.71 crore against a net loss of Rs 11.52 crore in Q1-FY23 and a net loss of Rs 151 crore in FY23.

The gross profit margin of 17.03 per cent in Q1-FY24 allows for a high profit pool to leverage as cost efficiency sets in. The company said it is on the cusp of an increase in profitability trajectory with business model efficiency and operating leverage setting in.
 

The total offer size comprises a fresh issue aggregating up to Rs 365 crore in equity shares and an Offer for Sale (OFS) of up to 41,248,162 equity shares by selling shareholders (the Total Offer Size). Those offering shares in the OFS include promoters and founders—Varun Alagh and Ghazal Alagh—and investors like Fireside Ventures Fund, Sofina, Stellaris, Kunal Bahl, Rohit Kumar Bansal, Rishabh Harsh Mariwala and Bollywood actor Shilpa Shetty Kundra.

The offer will close on Thursday, 2 November 2023.

The price band of the offer has been fixed at Rs 308 to Rs 324 per equity share. Bids can be made for a minimum of 46 equity shares and in multiples of 46 equity shares thereafter. A discount of Rs 30 per equity share is being offered to eligible employees bidding in the employee reservation portion.

The company, as part of the Objects of the Offer, proposes to utilise the net proceeds raised through the fresh issue towards advertisement expenses for enhancing the awareness and visibility of brands. It also plans to use the net proceeds raised on capital expenditure to be incurred by the company for setting up new Exclusive Brand Outlets (EBOs), and investment in its subsidiary, Bhabani Blunt Hairdressing Private Limited (BBlunt), for setting up new salons. It also plans to invest in general corporate purposes and an unidentified inorganic acquisition.

Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, JM Financial Limited, and J.P. Morgan India Private Limited are the Book Running Lead Managers to the offer.

IRM Energy falls over 6% on market debut  

Shares of IRM Energy declined more than 6 per cent during their stock mar­ket debut on Thursday. Its stock finished at Rs 473, down Rs 32, or 6.4 per cent over the issue price of Rs 505. The poor listing day performance comes even as the city gas distribution firm’s Rs 544-crore IPO garnered more than 25 times subs­cription. Market players bla­med broa­der market selloff for the weak listing. At the last close, IRM was valued at Rs 1,942 crore.  BS REPORTER

Blue Jet Healthcare subscribed 1.32X  

The initial public offering (IPO) of pharm­aceutical ingredient maker Blue Jet Healthcare was subscribed 1.32 times on the day two of subscription on Thursday. The Rs 840.27-crore IPO received bids for 22,416,115 shares, against 16,999,612 shares on offer, according to the NSE data. The portion for non-institutional investors was subscribed 2.84 times, while the category for retail individual investors  received 1.37 times subscr­iption. The qualified institutional buyers part got subscribed 9 per cent. PTI

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Oct 26 2023 | 7:37 PM IST

Explore News