Mamaearth IPO: Check Honasa Consumer's price band, lot size and other details

The initial public offering (IPO) of Honasa Consumer, the parent entity of Mamaearth, will open for bidding on Tuesday, October 31. The company would offer its shares in the price band of Rs 308-324 per share. Potential investors can bid for one lot of 46 equity shares and in multiples. The bidding process will conclude on Thursday, November 2.

Honasa Consumer, which was incorporated in 2016, provides beauty and personal care products through its digital platform. It currently serves more than 500 cities in India. Honasa Consumer's product portfolio includes baby care, face care, body care, hair care, color cosmetics, and fragrances as of June 30, 2023.

Honasa consumer will issue fresh equity shares worth Rs 365 crore. Existing shareholders and promoters of the company would offload 4,12,48,162 equity shares via offer-for-sale (OFS) route.

At the upper price band, Honasa is looking to raise Rs 1,701.44 crore from its primary stake sale. Anchor book will open on Monday, October 30.

Promoters Varun Alagh and Ghazal Alagh along with other shareholders including Fireside Ventures, Sofina, Stellaris, Kunal Bahl, Rishabh Harsh Mariwala, Rohit Kumar Bansal and Shilpa Shetty Kundra will participate in the OFS. The company has reserved shares worth Rs 1 crore for its eligible employees, who will get a discount of Rs 30 per share.

The company is looking to utilise the net proceeds from the issue towards advertisement expenses towards enhancing the awareness and visibility of the brands; capital expenditure to be incurred by the company for setting up new EBOs; Investment in the company's Subsidiary, BBlunt for setting up new salons; general corporate purposes; and unidentified inorganic acquisition.

Honasa Consumer is focused on the beauty and personal care business, which includes product range in baby care, face care, body care, hair care, color cosmetics and fragrances segments. The company also has a professional salon chain named as 'BBlunt Salons' to supplement its portfolio.

The company has reserved 75 per cent of the net issue for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of the allocation in the issue. Remaining 10 per cent of the net offer shall be allocation to the retail investors.

Citigroup Global Markets India, Kotak Mahindra Capital Company, JM Financial and JP Morgan India are lead managers for the issue and Kfin Technologies have been appointed as the registrar for this IPO. Shares of the company will be listed on both BSE and NSE. 

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