Honasa Consumer co-founder Varun Alagh ups stake in Mamaearth-parent via Rs 50 crore block deal

Honasa Consumer co-founder Varun Alagh ups stake in Mamaearth-parent via Rs 50 crore block deal

Honasa Consumer co-founder Varun Alagh has increased his stake in the company by buying shares worth nearly Rs 50 crore through a block deal, according to a regulatory filing.

In its disclosure, Honasa Consumer Limited said Alagh acquired 18,51,851 equity shares, representing 0.57 percent of the company’s total share capital, at an average price of Rs 270 per share. The transaction aggregates to Rs 49.99 crore.

“Post acquisition, Mr Varun Alagh holds 10,55,82,701 equity shares, representing 32.45 percent of the total share capital of the company,” the company said in the filing.

Following the purchase, the aggregate shareholding of the promoter and promoter group increased to 11,56,48,401 shares, translating to a 35.54 percent stake in the company. The transaction was executed through the block deal mechanism, with the company not disclosing the identity of the seller.

The stake increase comes against the backdrop of Honasa Consumer’s latest quarterly performance. The Mamaearth-parent reported a net profit of Rs 41.3 crore for the June quarter, marginally up 2.5 percent year-on-year, compared with a net profit of Rs 24.9 crore in the preceding quarter, according to a company filing dated August 12.

Revenue from operations rose 7 percent year-on-year to Rs 595.3 crore in the June quarter, up from Rs 554 crore in the year-ago period and Rs 533.5 crore in the previous quarter.

The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) improved by 264 basis points to Rs 46 crore, with the EBITDA margin expanding to 7.7 percent during the quarter.

Total expenses for the Gurugram-based firm increased to Rs 563.6 crore in the quarter ended June, compared with Rs 520.4 crore a year earlier and Rs 522.2 crore in the previous quarter.