FMCG company Onest files IPO papers, fresh issue at Rs 77 crore

Public offer comprises a fresh issuance of shares worth Rs 77 crore.

FMCG company Onest has filed draft red herring prospectus (DRHP) with the capital market regulator Sebi for fundraising via an initial public offering (IPO).

The public offer comprises a fresh issuance of shares worth Rs 77 crore and an offer for sale (OFS) of 32.5 lakh shares by promoter and investors.

Founder and promoter Pawan Kumar Gupta, who holds an 84.46 percent stake in the company, will be offloading 26.64 lakh shares via the OFS route and Glentrade DMCC will be selling 4.68 lakh shares via offer for sale.

Most of fresh issue proceeds, excluding issue expenses, will be utilised for incremental working capital requirements, besides general corporate purposes.

Dubai-based Glentrade DMCC holds 7.39 percent shares in Onest, which provides home care and personal care products, food products and household products to B2B2C and B2B customers.

With a presence in Africa, Middle East, LATIN, SAARC, ASEAN and CIS countries, the company exported to over 57 countries as of March 2023 and has recently entered the domestic market with its wide range of products through its subsidiary, Onest EasyLife LLP.

Also read: SBFC Finance sets IPO price band at Rs 54-57 per share

Onest has grown its revenue from operations at a CAGR of 69.55 percent during FY21-FY23. It is also engaged in the business of private labelling and aims to establish a base in developed countries such as the US and in the European markets.

Profit in the year ended March FY23 at Rs 8 crore increased by 227 percent compared to the previous year, while EBITDA (earnings before interest, tax, depreciation and amortisation) grew by 191 percent to Rs 10.65 crore during the same period with margin expansion of 238 bps YoY for the year.

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Monarch Networth Capital and Unistone Capital are appointed as merchant bankers for the IPO.