Mamaearth parent Honasa Consumer's much-awaited initial public offering (IPO) is all set to open for subscription on October 31 and sources have told Moneycontrol that the price band could be in the range of Rs 320-350. The upper end of the price band is unlikely to go above Rs 350, they added.
The company has already announced that 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. The issue size is expected around Rs 1,700 crore, as reported by Moneycontrol earlier.
The price band will be announced on October 26 (tomorrow).
The net proceeds of the IPO will be used for advertisement expenses to improve brand visibility and awareness, setting up new exclusive brand outlets, investment in BBlunt for setting up new salons, general corporate purposes and inorganic growth.
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.
Also Read: Consumerware player Cello World sets IPO price band at Rs 617-648 per share
It had a market share (in terms of gross merchandise value) of approximately 28.9 percent in the DTC (direct-to-consumer) BPC market in the calendar year 2022, as per Redseer. In the total BPC market, the company’s market share was 1.5 percent.
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.
Selling shareholders and likely gains
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.
Varun Alagh and Ghazal Alagh are co-founders so their cost of acquisition is negligible, as per the DRHP. Fireside Ventures Fund's cost of acquisition was Rs 7.33, indicating 47x gains if the price is around Rs 350. Kunal Bahl's cost of acquisition was Rs 3.21, indicating a 109x gain on investment.
Shilpa Shetty Kundra's cost of acquisition was Rs 41.86, which means a 13x gain on investment.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
