Varun & Ghazal Alagh-owned Honasa Consumer is set to launch its initial public offering on October 31. The price band for the issue will be announced in coming days.
The anchor book of the issue will be opened for a day on October 30, while the offer for the public will be close on November 2.
The IPO comprises a fresh issuance of shares worth Rs 365 crore, and an offer-for-sale (OFS) of 4.12 crore equity shares by promoters and investors.
Moneycontrol was the first to publish the report saying the Rs 1,700-crore offer by US-based venture capital firm Sequoia Capital-backed Honasa will open for subscription on October 31.
If the issue size comes to around Rs 1,700 crore, then the OFS size may be around Rs 1,335 crore.
Varun Alagh, Ghazal Alagh, Fireside Ventures Fund, Sofina, Stellaris, Kunal Bahl, Rishabh Harsh Mariwala, Rohit Kumar Bansal, and Shilpa Shetty Kundra are the selling shareholders in the OFS.
The Gurugram-based direct-to-consumer (DTC) company, has also reserved Rs 1 crore worth shares for its employees.
Also read: Blue Jet Healthcare IPO: 10 things to know before subscribing to Rs 840.27-crore issue
Of the net fresh issue proceeds, the firm will spend Rs 182 crore for advertisement expenses, and Rs 20.6 crore for setting up new EBOs (exclusive brand outlets). Further, it will invest Rs 26 crore in subsidiary, Bhabani Blunt Hairdressing (BBlunt) for setting up new salons. And the remaining funds will be utilised for general corporate purposes and unidentified inorganic acquisition.
Financial Performance
Honasa Consumer that owned portfolio of brands like Mamaearth, The Derma Co, Aqualogica, Ayuga, and BBlunt, claimed to be the largest digital-first beauty and personal care (BPC) company in India in terms of revenue for FY23. It had a market share (in terms of gross merchandise value) of approximately 28.9 percent in the DTC BPC market in calendar year 2022.
Its revenue from operations grew at a CAGR of 80.14 percent during FY21-FY23, to Rs 1,492.75 crore in FY23, but the company posted net loss of Rs 142.8 crore during the year ended March FY23, impacted by the impairment loss on goodwill and other intangible assets (Rs 154.7 crore), against profit of Rs 15.7 crore in previous year.
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EBITDA performance remained strong, rising nearly 98 percent on-year to Rs 22.8 crore with margin expansion of 30 bps at 1.52 percent for the year FY23.
For the June FY24 quarter, net profit stood at Rs 25.96 crore against loss of Rs 9.3 crore in corresponding period last fiscal. Revenue from operations during the same period surged 49 percent to Rs 464.5 crore.
With products in the baby care, face care, body care, hair care, color cosmetics and fragrances segments, Honasa Consumer had received approval from the Sebi in August this year, to go ahead with IPO plans.
Promoters hold 37.41 percent stake in the company, while the remaining shares are held by public including Fireside Ventures Fund, PXV VI, Stellaris, Sofina, and Sequoia Capital.
Also read: Blue Jet Healthcare raises Rs 252 crore via anchor book ahead of IPO
Listing Date
The company will finalise the basis of allotment of IPO shares by November 7, and the equity shares will be credited to the demat accounts of successful investors by November 9.
The listing of its equity shares will take place on the BSE and NSE, with effect from November 10, the T+6 timeline, as per the IPO schedule.
Merchant bankers to the issue are Kotak Mahindra Capital Company, Citigroup Global Markets India, JM Financial, and JP Morgan India, while KFin Technologies is the registrar to the offer.
Also read: IRM Energy IPO: Check allotment status, GMP and more
Honasa will be the fourth IPO launching in the current month, after IRM Energy, Blue Jet Healthcare, and Cello World.
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