Mamaearth IPO: Honasa Consumer Ltd, which owns new-age FMCG brands like Mamaearth and The Derma Co, is set to launch its initial public offering (IPO) on October 31. The issue will conclude on November 2. The company has fixed the price band for the Rs 365-crore IPO at Rs 308-324 a share.
The anchor book of the offer will open for a day on October 30, according to the red herring prospectus.
The IPO comprises a fresh issue of equity shares worth Rs 365 crore and an offer for sale (OFS) component of 4.12 crore equity shares by promoters, investors, and other selling shareholders.
The Mamaearth IPO lot size is 46 equity shares and in multiples of 46 equity shares thereafter.
Mamaearth IPO has reserved not less than 75 per cent of the shares in the public issue for qualified institutional buyers (QIB), not more than 15 per cent for non-institutional investors (NII), and not more than 10 per cent of the offer is reserved for Retail Investors.
A discount of Rs 30 per equity share is being offered to eligible employees bidding in the employee reserve portion.
Those offering shares in the OFS include promoters and founders — Varun Alagh and Ghazal Alagh — and investors like Fireside Ventures Fund, Sofina, Stellaris, Kunal Bahl, Rohit Kumar Bansal, Rishabh Harsh Mariwala and Bollywood actor Shilpa Shetty Kundra.
Proceeds from the fresh issue would be utilised towards advertising expenses to improve awareness and brand visibility, setting up new exclusive brand outlets, investment in its subsidiary BBlunt for setting up new salons, general corporate purposes, and inorganic acquisition.
The Gurugram-based beauty and personal care 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. Kotak Mahindra Capital Company, Citigroup Global Markets India, JM Financial and JP Morgan India Pvt Ltd are the book-running lead managers to the issue. The equity shares of the company will be listed on the BSE and NSE.