Mamaearth's parent company, Honasa Consumer Ltd, has unveiled the price band for its forthcoming initial public offering (IPO), scheduled to open on October 31. The IPO will feature a price range of Rs 308-324 per share. As per the IPO details, the anchor issue will commence on October 30 and conclude on November 2, with the basis of allotment scheduled for November 7 and refund initiation on November 8. Investors can anticipate the stock's listing on exchanges on November 10.
This IPO has a fresh issue of Rs 365 crore, and an offer for sale of up to 41.25 million shares. At the upper price band, the company is set to generate around Rs 1701.44 crore, pushing the firm's valuation to Rs 10424.53 crore. It's worth noting that an earlier Moneycontrol report suggested a price band within the range of Rs 320-350. The report highlighted that the upper end of the price band was unlikely to exceed Rs 350.
Selling shareholders in the offer for sale include Varun Alagh, Ghazal Alagh, Sofina, Stellaris, Kunal Bahl, Fireside Ventures Fund, Rohit Kumar Bansal, Rishabh Harsh Mariwala, and Shilpa Shetty Kundra.
The net proceeds from the IPO are earmarked for various purposes, including advertising expenses to enhance brand visibility and awareness, the establishment of new exclusive brand outlets, investments in BBlunt for setting up new salons, general corporate needs, and inorganic growth.
Honasa Consumer, the parent company, is the owner of popular brands like Mamaearth and The Derma Co. It's positioned as India's leading digital-first beauty and personal care (BPC) company by FY23 revenue. In 2022, they captured a 28.9% direct-to-consumer BPC market share and 1.5% share in overall BPC market. Despite reporting a net loss of Rs 142.8 crore, their FY23 revenue reached Rs 1,492.75 crore.