Mamaearth's Parent Sets IPO Date On Oct. 31, Reduces Offer Size

Mamaearth's parent company, Honasa Consumer Ltd., is set to launch its initial public offering on Tuesday, Oct. 31. The three-day issue will conclude on Nov. 2.

The anchor book of the issue will be opened for a day on Oct. 30. The price band is yet to be announced.

Mamaearth IPO consists of a fresh issue of shares worth Rs 365 crore and an offer-for-sale of 4.12 crore (41,248,162) equity shares by promoters and investors, according to the Red Herring Prospectus filed by the Gurugram-based company on Oct. 23.

This is lower than the fresh issue worth Rs 400 crore and an OFS component of 46.82 million shares, which was initially planned as per its DRHP filed in December.

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

The company proposes to utilise the net proceeds towards advertisement expenses, capital expenditure for setting up new exclusive brand outlets, investment in its subsidiary, BBlunt, for setting up new salons, general corporate purposes and unidentified inorganic acquisitions.

Financials

The company reported a net loss of Rs 151 crore in FY23, led by a one-time impairment loss on goodwill and other intangible assets. It had reported a net profit of Rs 14.4 crore in the previous fiscal year. Its total operating revenue stood at Rs 1,492.7 crore in FY23, rising 58% from Rs 943.4 crore in FY22.

For the three months ended June 2023, the D2C unicorn reported a profit of Rs 24.7 crore, whereas revenue stood at Rs 464 crore.

Its fully diluted earnings per share on a pre-offer basis were (4.66) in the financial year ended March 31, as per the RHP. For the three-month period ended June 30, the EPS is 0.83.

Ghazal and Varun Alagh, a husband and wife team, founded the business in 2016. It sells secure cosmetics and personal care products. It owns direct-to-consumer skincare and wellness brands like BBlunt and The Derma Co., among others.

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