Honest Consumer Limited, the parent company of the well-known personal care and beauty product brand Mamaearth, is preparing to launch its initial public offering (IPO) on Tuesday, commencing on October 31 and concluding on November 2. In anticipation of the IPO, the company has set a price range of Rs 308-324 per share, with the objective of raising a significant amount of Rs 1,701 crore.
Here are ten key points to keep in mind regarding this IPO:
1. The Mamaearth IPO opens on October 31 and closes on November 2. Anchor investor investments will be revealed on October 30.
2. The IPO's price range is Rs 308-324 per share.
3. Honasa Consumer, the company behind various consumer brands, including Mamaearth, intends to generate Rs 1,701 crore through this IPO. This amount includes a fresh issue of shares valued at Rs 365 crore and an offer-for-sale of 4.13 crore equity shares by promoters and investors.
4. The Gurugram-based beauty and personal care company is allocating Rs 182 crore for advertising to enhance brand awareness and visibility.
5. An additional Rs 20.6 crore will be used to establish new exclusive brand outlets, and Rs 26 crore will be invested in its subsidiary, BBlunt, to establish new salons. The remaining funds will be utilized for general corporate purposes and unidentified inorganic acquisitions.
6. The minimum bid can be made for 46 equity shares, with subsequent bids in multiples of 46 shares. Retail investors must commit a minimum of Rs 14,904 for 46 shares, with the option to invest up to a maximum of Rs 1,93,752 for 598 equity shares.
7. Honasa Consumer asserts its position as the largest digital-first beauty and personal care company in India in terms of revenue from operations for the fiscal year 2023.
8. The Mamaearth brand, launched in 2016, has rapidly grown to become the fastest-growing BPC (Beauty and Personal Care) brand in India, achieving an annual revenue of Rs 1,000 crore within six years.
9. Honasa Consumer reported robust revenue growth, with a Compound Annual Growth Rate (CAGR) of 80.14% between FY21 and FY23, reaching Rs 1,492.75 crore in FY23. While profitability experienced fluctuations, EBITDA performance remained strong.
10. Promoters Varun Alagh and Ghazal Alagh hold a 37.41% stake in Honasa, with the remaining shareholding held by the public. Notable public shareholders include Sequoia Capital, PXV VI, and Fireside Ventures Fund.
11. Honasa Consumer does not manufacture its products but relies on third-party manufacturers. A significant portion of its revenue is derived from a limited range of products.
12. The company is primarily reliant on the performance of the Mamaearth brand for generating revenue.
13. The allotment of IPO shares will be finalized by November 7, with shares credited to investors' demat accounts by November 9.
14. Trading in its equity shares is scheduled to commence on the BSE and NSE on November 10. In the grey market, Mamaearth's shares are presently trading at a 2-3% premium over the upper price band.
