Mamaearth parent eyes pre-Diwali listing, plans Rs 1,700 cr IPO: Report

The much-talked about initial public offer (IPO) in the Indian consumer segment - that of Mamaearth parent Honasa Consumer - is likely to hit Dalal Street by the end of October 2023. Other than Mamaearth, Honasa Cosumer owns prominent D2C brands like - The Derma Co and BBLunt brought from Godrej Consumer Products for Rs 134 crore in February 2022.

According to a report by Moneycontrol, Honasa Consumer is looking to raise around Rs 1,700 crore from the IPO, targeting an estimated valuation of around Rs 10,500 crore.

Honasa Consumer is a digital-first house of brands which caters to products in beauty and personal care. As per the Draft Red Herring prospectus (DRHP) filed by the company, the proposed IPO consists of fresh issue of shares worth Rs 400 crore, and an Offer for Sale (OFS) of up to 46.80 million equity shares. 

"There is a strong demand for the Honasa Consumer IPO which is scheduled for October 31 to November 2. The anchor portion will open on October 30. There is no plan for a pre-IPO round as of now." the report said attributing to sources.

Honasa Consumer was co-founded in 2016 by the husband-wife duo of Varun and Ghazal Alagh. The firm had attained 'Unicorn' status after raising $52 million capital at a valuation of $1.2 billion in January 2022, led by top VC firm Peak XV Partners (formerly known as Sequoia Capital).

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Presently, founders husband-wife duo collectively own 43.54 per cent stake, while Peak XV Partners is the other major shareholder, which owns 20.94 per cent, followed by Fireside Ventures nd Stellaris - 15.01 per cent and 11.24 per cent, respectively.

Peak XV Partners will not be participating in the OFS. In March, Honasa CEO Varun Alagh had told Reuters that its largest investor, Sequoia (rebranded as Peak XV Partners in July) would not be selling any shares in the IPO and the founders would own more than 97 per cent of their shares post IPO.

Apart from the founders, other shareholders who will be diluting their holdings in the IPO include Sofina Ventures SA, Evolvence, Fireside Ventures, Stellaris, Kunal Bahl and Rohit Kumar Bansal of Snapdeal, Rishabh Harsh Mariwala of Sharrp Ventures and Bollywood actress Shilpa Shetty Kundra.

For the fiscal year ended March 2022, Honasa Consumer reported operating income of Rs 456 crore, and a net profit of Rs 14.4 crore. 

Other players in the beauty and skin care segment include the likes of Nykaa, Purplle, The Good Glam Group & Sugar Cosmetics.