Honasa Consumer IPO Debuts October 31, Mamaearth Parent To Showcase Rs 365 Cr Fresh Issue

On October 31, Honasa Consumer is poised to commence its initial public offering (IPO). The anchor book for the issue will be accessible for a single day on October 30, and the public offering will conclude on November 2.

According to a report by Moneycontrol, the price band for the issue will be announced in the coming days.

The IPO of the Gurugram-based direct-to-consumer company involves a new issuance of shares valued at Rs 365 crore, along with an offer-for-sale (OFS) of 4.12 crore equity shares by promoters and investors.

If the total offering size is approximately Rs 1,700 crore, the OFS size could be around Rs 1,335 crore.

The OFS involves the following selling shareholders: Varun Alagh, Ghazal Alagh, Fireside Ventures Fund, Sofina, Stellaris, Kunal Bahl, Rishabh Harsh Mariwala, Rohit Kumar Bansal, and Shilpa Shetty Kundra.

The company has also reserved Rs 1 crore worth shares for its employees.

Out of the net proceeds from the fresh issue, the company plans to allocate Rs 182 crore for advertising expenses and Rs 20.6 crore for the establishment of new Exclusive Brand Outlets (EBOs). Additionally, an investment of Rs 26 crore is earmarked for subsidiary Bhabani Blunt Hairdressing (BBlunt) to set up new salons. The remaining funds will be utilized for general corporate purposes and undisclosed inorganic acquisitions.

Listing 

The company is scheduled to determine the basis of allotment for IPO shares by November 7, with the equity shares expected to be deposited into the demat accounts of successful investors by November 9.

The listing of its equity shares will take place on the BSE and NSE, with effect from November 10, the T+6 timeline, as per the IPO schedule, Moneycontrol reported.

Merchant bankers to the issue are Kotak Mahindra Capital Company, Citigroup Global Markets India, JM Financial, and JP Morgan India, while KFin Technologies is the registrar to the offer.

Honasa will be the fourth IPO launching in the current month, after IRM Energy, Blue Jet Healthcare, and Cello World.

The company was founded in 2016 by husband-wife duo Varun and Ghazal Alagh. It began with the launch of Mamaearth and over the years added five more brands to its portfolio, including The Derma Co, Aqualogica, Ayuga, BBlunt, and Dr Sheth’s, and built a ‘House of Brands’ architecture.

In January 2022, the company entered the unicorn club.