Honasa Consumer Ltd, which owns new-age FMCG brands like Mamaearth and The Derma Co, is gearing up to launch its Initial Public Offering (IPO) on October 31, marking a significant milestone in the brand's journey
The issue will open for public subscription on October 31 and conclude on November 2 and the anchor book of the offer will be opened for a day on October 30, the company announced
The IPO comprises a fresh issue of equity shares worth Rs 365 crore and an offer-for-sale (OFS) component of 4.12 crore equity shares by promoters, investors, and other selling shareholders
Co-founded in 2016 by the husband-wife duo Varun and Ghazal Alagh, Honasa Consumer achieved unicorn status in January 2022 after raising $52 million from Peak XV Partners (formerly known as Sequoia Capital) at a valuation of $1.2 billion
Those offering shares in the OFS include promoters -- 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
Honasa Consumer Ltd fixed a price band of Rs 308 to Rs 324 per share for its Rs 1,701-crore IPO. At the upper end of the price band, the IPO is expected to fetch Rs 1,701.44 crore. The company seeks Rs 10,700-crore valuation
Proceeds from the fresh issue would be utilised towards advertising expenses to improve awareness and brand visibility, setting up new exclusive brand outlets, investment in its subsidiary BBlunt for setting up new salons, general corporate purposes, and inorganic acquisition
As of now, Varun and Ghazal Alagh collectively hold a 43.54% stake in the company. Peak XV Partners is another significant shareholder with a 20.94% stake, followed by Fireside Ventures (15.01%) and Stellaris (11.24%)
Honasa Consumer reported robust revenue from operations of Rs 464.49 crore in Q1FY24, representing a remarkable 49% increase compared to the same period last year. Notably, the company transitioned from a net loss of Rs 2.51 crore to a net profit of Rs 9.24 crore in the same quarter. While FY23 saw a net loss of Rs 150.97 crore, the company's operating revenue surged by 58% year-on-year to Rs 1,492.75 crore. In addition, the EBITDA demonstrated strong growth, rising nearly 98% on-year to Rs 22.8 crore, with a margin expansion of 30 basis points at 1.52% for FY23
The Gurugram-based beauty and personal care company began with the launch of Mamaearth and over the years added five more brands to its portfolio, including The Derma Co, Aqualogica, Ayuga, BBlunt, and Dr Sheth's, and built a 'House of Brands' architecture