Produced by: Tarun Mishra Designed by: Mohsin Shaikh
The allotment status of Honasa Consumer, the parent company of Mamaearth, is expected to be determined by November 3, or potentially over the upcoming weekend. The primary sale of stakes in the beauty and personal care (BPC) sector garnered a mixed response over the three-day bidding period. The company had established a price range of Rs 308-324
This IPO will see notable investors such as Bollywood actress Shilpa Shetty Kundra, Snapdeal's co-founder Kunal Bahl, Rohit Kumar Bansal, Marico promoter Rishab Harsh Mariwala, along with the husband-wife promoter duo of Varun and Ghazal Alagh, divesting their stakes. Let's take a look at how many shares they are selling and the potential gains they could make through this IPO
Snapdeal's co-founder, Kunal Bahl, and Rohit Kumar Bansal, had obtained shares of Honasa at an average price of Rs 3.21 per share. They stand to gain up to 101 times the average cost of their holdings by participating in the offering. Both shareholders are offering 11,93,250 equity shares each, potentially yielding them individual profits of Rs 36.54 crore
Rishabh Harsh Mariwala, the promoter of Marico, originally acquired shares at an average cost of Rs 6.05 per share. By offering 57,00,188 equity shares in the OFS, he is poised to make profits of approximately 54 times his initial investment. After factoring in the costs, his net profit is expected to be approximately Rs 181.23 crore
Bollywood actress Shilpa Shetty Kundra will sell 13,93,200 equity shares through the OFS process. She initially acquired these shares at a price of Rs 41.86 each and is expected to realise approximately 8 times the return on her investment. Her total profit from the offering is estimated at Rs 39.30 crore
Varun Alagh and his wife, Ghazal Alagh, renowned for her appearances on Shark Tank, initially acquired shares at a minimal weighted average cost as they were the founders of the company. Varun is now offering up to 31,86,300 shares for sale, while Ghazal is selling up to one lakh shares, bagging in approximately Rs 106 crore. However, this will only amount to 3% of the total stake that they hold.
Additional shareholders participating in the Offer for Sale (OFS) include Fireside Ventures Fund, planning to sell a maximum of 79,7,478 shares, Sofina offering up to 95,66,974 shares, and Stellaris divesting a maximum of 1,09,42,522 shares. Their average acquisition costs per share are Rs 7.33, Rs 112.07, and Rs 7.82, respectively
Sequoia Capital India, now known as Peak XV Partners, which holds 24.01% stake in the company will not be selling any stake in the IPO
Mamaearth's parent company raised a total of Rs 1,701 crore through its primary offering, comprising a fresh issue amounting to Rs 365 crore and an offer-for-sale (OFS) involving up to 4.12 crore equity shares. The issue garnered an overall subscription rate of 7.61 times. Amid mixed response on the IPO, qualified institutional bidders (QIBs) exhibited the highest subscription rate at 11.50 times, while non-institutional investors had a subscription rate of 4.02 times. Retail investors and employees subscribed at rates of 1.35 times and 4.88 times
Existing shareholders of Honasa Consumer will divest 4,12,48,162 equity shares through the offer for sale (OFS), potentially realizing Rs 1,336.44 crore at the upper limit of the price range. These investors may receive returns of up to 101 times on their initial investments in Mamaearth. Additionally, Honasa Consumer will raise Rs 365 crore through a fresh issue. On October 30, just a day before the issue opened, Honasa Consumer successfully raised Rs 765.2 crore from 49 anchor investors