Mamaearth’s parent company, Honasa Consumer Ltd, is all set to introduce its Initial Public Offering (IPO) on October 31. This means that for the first time, the company will offer its shares to the public for purchase. Mamaearth was founded in 2016 by the married couple Varun Alagh and Ghazal Alagh. Initially, they introduced Mamaearth and later expanded their brand portfolio to include The Derma Co, Aqualogica, Ayuga, BBlunt, and Dr Sheth’s.
Mamaearth IPO: The price of each share in this IPO will fall within the range of ₹308 to ₹324. The IPO subscription will be open to the public from October 31 to November 2. There’s a special phase called the “anchor book,” which will take place on October 30.
The IPO consists of two parts: a fresh issue of equity shares worth ₹365 crore, which the company is creating, and an offer-for-sale (OFS) component of ₹4.12 crore equity shares. Existing shareholders, including the founders and investors, will sell these shares. If the share price is at the higher end of the range, they might raise around ₹1,701.44 crore. This will determine the company’s total value, or market capitalization, which is estimated to be ₹10,424 crore.
Prominent figures, such as the co-founders Varun Alagh and Ghazal Alagh, along with investors like Fireside Ventures Fund, Sofina, Stellaris, and others, are selling their shares in the OFS. The money collected from the fresh issue will be allocated for various purposes, including advertising expenses to enhance brand visibility, establishing new exclusive brand outlets, investments in subsidiary company BBlunt to create new salons, general corporate needs, and potentially acquiring other businesses.
The business is receiving IPO advice from Kotak Mahindra Capital business, JM Financial, Citigroup Global Markets India, and JP Morgan India. The company’s shares will be listed on the BSE and NSE, two prominent stock exchanges in India.
In conclusion, Mamaearth’s parent company, Honasa Consumer Ltd, is gearing up for its inaugural public offering (IPO) on October 31. This significant financial event offers the public an opportunity to invest in the company. With a defined price range and utilization of funds outlined, it’s a pivotal moment for Mamaearth’s growth. The company’s journey, guided by its founders and investors, has led to this exciting IPO, supported by leading financial advisory firms.