Mamaearth IPO: Shilpa Shetty looks at 8x returns, Snapdeal co-founders 100x!

Honasa Consumer that owns portfolio of brands like Mamaearth, The Derma Co, Aqualogica, Ayuga, and BBlunt, claims to be the largest digital-first beauty and personal care (BPC) company in India in terms of revenue for FY23

Mamaearth parent Honasa Consumer Ltd has set a price band of Rs 308-324 a share for its initial public offering (IPO), which will open on October 31. Bollywood actor Shilpa Shetty Kundra, who is among the selling shareholders in the IPO, will walk away with 8x returns on her investment.

As per the prospectus, Shilpa Shetty's average cost of acquisition was Rs 41.86. She is selling about 1,393,200 shares in the offer-for-sale portion.

Snapdeal co-founders Kunal Bahl and Rohit Bansal, who invested in Honasa back in 2018 and will offload 1,193,250 equity shares each, had acquired shares at Rs 3.21 apiece. For them, the return on investment is over 100x.

Meanwhile, Marico's Rishabh Harsh Mariwala's average cost of acquisition was Rs 6.05 per share so he is sitting on 53x return.

Also Watch: Mamaearth IPO opens for subscription on 31 Oct | Honasa Consumer CEO Varun Alagh & CIO Ghazal Alagh

The anchor portion will open on October 30 and the issue will close on November 2.

The IPO consists of a fresh issue of Rs 365 crore and an offer for sale of up to 41.25 million shares. On the upper price band, the firm will raise around Rs 1,701.44 crore. With this, the firm's valuation stood at Rs 10,424.53 crore.

Apart from the aforementioned names, Varun Alagh, Ghazal Alagh, Fireside Ventures Fund, Sofina and Stellaris are also among the selling shareholders in the OFS.

Varun Alagh and Ghazal Alagh are co-founders so their cost of acquisition is negligible, as per the prospectus. Fireside Ventures Fund's cost of acquisition was Rs 7.33, indicating 44.2x gains at the upper end of the price band. Stellaris' cost of acquisition was also the same.

Meanwhile, Belgium-based Sofina fund's average cost of acquisition was Rs 112.07, indicating about 3x return on investment.

Honasa Consumer which owns a portfolio of brands like Mamaearth, The Derma Co, Aqualogica, Ayuga, and BBlunt, claims to be the largest digital-first beauty and personal care (BPC) company in India in terms of revenue for FY23.

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 a net loss of Rs 142.8 crore during the year ended March FY23.