Honasa, a parent firm of Mamaearth, plans an IPO of Rs 1,700 crore in October
Monday, 23 October 2023, 18:17 IST
Honasa Consumer Private Limited, the parent company of well-known brands such as Mamaearth, The Derma Co, and BBlunt, is scheduled to issue one of the most anticipated IPOs in the Indian consumer segment in October,to numerous industry sources familiar with the subject. The fast-growing direct-to-consumer (D2C) firm, which operates in the beauty, baby care, and skincare sectors, gained unicorn status in 2022 and received regulatory approval from SEBI in August after filing draft papers in December 2022. "There is strong demand for the Honasa Consumer IPO, which is scheduled for October to November." The anchor part will open in October. As of present, there are no plans for a pre-IPO round".
Honasa Consumer was founded in 2016 by the husband-and-wife team Varun and Ghazal Alagh, who are also well-known for their appearance on 'Shark Tank.' The company achieved unicorn status when it secured $52 million at a valuation of $1.2 billion in a fundraising round led by leading VC firm Sequoia Capital in January 2022, the company intends to raise roughly Rs 1,700 crore through a combination of a fresh issuance and an offer-for-sale, with an estimated worth of over Rs 10,500 crore.
In June 2022, Reuters suggested that Honasa Consumer was eyeing a valuation of $3 billion (over Rs 22,000 crore) for its IPO, which caused a stir on social media, with analysts and market experts questioning the lofty figure. In response, Ghazal Alagh issued a detailed clarification, stating, “In our DRHP, as is the standard practice, there is no mention of valuation. Valuation discovery is a process that 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 working on the IPO include Kotak Mahindra Capital, JM Financial, Citi, and JP Morgan, while the legal advisors are Cyril Amarchand Mangaldas, IndusLaw, and Khaitan & Co.The Alaghs, Sofina Ventures SA, Evolvence, Fireside Ventures, Stellaris Venture Partners, Snapdeal Founder Kunal Bahl, Bollywood actress Shilpa Shetty Kundra, Rishabh Harsh Mariwala, and Rohit Kumar Bansal are among the stockholders who would dilute their stakes in the draft red herring prospectus (DRHP). Sequoia Capital is not a party to the tender offer.
The net proceeds of the IPO will be used for advertising expenses to increase brand visibility and awareness, the establishment of new exclusive brand stores, investment in BBlunt for the establishment of new salons, general corporate purposes, and inorganic expansion. Another competitor in the burgeoning D2C industry, Warburg Pincus-backed Boat, filed for an IPO in January 2022, with the audio-focused electronics brand seeking to raise around Rs 2,000 crore.
Honasa Consumer was founded in 2016 by the husband-and-wife team Varun and Ghazal Alagh, who are also well-known for their appearance on 'Shark Tank.' The company achieved unicorn status when it secured $52 million at a valuation of $1.2 billion in a fundraising round led by leading VC firm Sequoia Capital in January 2022, the company intends to raise roughly Rs 1,700 crore through a combination of a fresh issuance and an offer-for-sale, with an estimated worth of over Rs 10,500 crore.
In June 2022, Reuters suggested that Honasa Consumer was eyeing a valuation of $3 billion (over Rs 22,000 crore) for its IPO, which caused a stir on social media, with analysts and market experts questioning the lofty figure. In response, Ghazal Alagh issued a detailed clarification, stating, “In our DRHP, as is the standard practice, there is no mention of valuation. Valuation discovery is a process that 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 working on the IPO include Kotak Mahindra Capital, JM Financial, Citi, and JP Morgan, while the legal advisors are Cyril Amarchand Mangaldas, IndusLaw, and Khaitan & Co.The Alaghs, Sofina Ventures SA, Evolvence, Fireside Ventures, Stellaris Venture Partners, Snapdeal Founder Kunal Bahl, Bollywood actress Shilpa Shetty Kundra, Rishabh Harsh Mariwala, and Rohit Kumar Bansal are among the stockholders who would dilute their stakes in the draft red herring prospectus (DRHP). Sequoia Capital is not a party to the tender offer.
The net proceeds of the IPO will be used for advertising expenses to increase brand visibility and awareness, the establishment of new exclusive brand stores, investment in BBlunt for the establishment of new salons, general corporate purposes, and inorganic expansion. Another competitor in the burgeoning D2C industry, Warburg Pincus-backed Boat, filed for an IPO in January 2022, with the audio-focused electronics brand seeking to raise around Rs 2,000 crore.
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