Mamaearth's Honasa All Set To Launch IPO On October 31 (Image: mamaearth.in)
Mamaearth’s parent company, Honasa has plans of Initial Public Offer (IPO) listing. Honasa’s plan include Rs.1,700 crore IPO listing on October 31 at Rs.10,500 crore valuation. The Direct to Consumer (D2C) company, in the beauty, skin and baby care, was the first in the year 2022, to become a unicorn and to get the regulatory approval from the SEBI for listing.
Honasa Consumer Private Limited. is also the parent company of The Derma Co. and BBlunt. This IPO launch would be one of the very much awaited listing among the Indian consumer section, moneycontrol reported sources from the industry.
One of the sources said, “there is a strong demand for the Honasa Consumer IPO which is scheduled for October 31 to November 2. The anchor portion will open on October 30. There is no plan for a pre-IPO round as of now,” reported moneycontrol.
Honasa Consumer Private Limited. generated a unicorn status when it had raised $52 million and stood at a valuation of $1.2 billion during a round of fundraising which was led by the lead venture capital firm, Sequoia Capital, in January 2022. In the year 2016, the company was founded by Varun and Ghazal Alagh, the husband and wife duo of the “Shark Tank” fame.
Other sources have added that the company has plans to raise about Rs.1,700 crore with a mix of fresh issue and an offer-for-sale; and that the company was aiming at an estimate value of about Rs. 10,500 crore. Another source, confirmed. On this, money control said that the sources refused to be on record and that Honasa company has not yet responded to this.
Earlier in the year 2022, the company was reported as aiming at a valuation of Rs. $3 billion, in excess of Rs.22,000 crore, for its IPO which had led to a huge uproar on social media platforms as everybody, including market analysts and experts raised questions on the massive figure which was quoted. On this the company had come out with a clarification, saying that, “in our DRHP, as is the standard practice, there is no mention of valuation. Valuation discovery is a process which will take place over time as we get into deeper conversations with the investor community. We have not quoted or subscribed to the valuation numbers which are getting mentioned in various posts on social media. We have built this company and our brands with a lot of love, the same way we have raised our children.”
The investment banks which are on the IPO are, Kotak Mahindra Capital, JM Financial, Citi and JP Morgan and the legal advisors named are Cyril Amarchand Mangaldas, IndusLaw and Khaitan & Co, said moneycontrol
As per the DRHP (draft red herring prospectus), the shareholders who would be diluting their holdings would be the Alaghs, Sofina Ventures SA, Evolvence, Fireside Ventures, Stellaris Venture Partners, Snapdeal founder Kunal Bahl, cine star Shilpa Shetty Kundra, Rishabh Harsh Mariwala and Rohit Kumar Bansal. Sequoia Capital would not be taking part in the OFS.
The proceeds from the IPO is expected to be used up in advertisement for more visibility and awareness of the brand, for new outlets, for inorganic growth and corporate needs.
