Honasa Consumer IPO (Mamaearth IPO)

Honasa Consumer IPO will open for subscription from 31 October 2023. The company aims for an issue size of 1,701.44 Cr through this IPO.

Company Overview

Full nameHonasa Consumer Limited
Company Websitehttps://honasa.in/

About Company

Since launching Mamaearth in 2016, Honasa Consumer has been the largest digital-first beauty and personal care (BPC) company in India in terms of revenue from operations for FY 2023. Since its inception, the company has worked with the primary objective of developing products that address beauty and personal care problems faced by consumers.

The company makes its products available to its customers through omnichannel distribution networks across both online and offline touchpoints. Mamaearth had a market share (in terms of gross merchandise value) aggregating to approximately 5.4% of the online BPC market (i.e. DTC and e-commerce) in India in CY 2022, a market share (in terms of gross merchandise value) of 1.5% of the total BPC market for CY 2022 and a market share (in terms of gross merchandise value) aggregating to approximately 28.9% in the DTC BPC market in CY 2022.

Honasa Consumer has added five new brands to its portfolio, namely: The Derma company, Aqualogica, Ayuga, BBlunt, and Dr. Sheth’s, and has built a ‘House of Brands’ architecture. As of 30 June 2023, its portfolio of brands with differentiated value propositions includes products in the baby care, face care, body care, hair care, color cosmetics, and fragrances segments. Honasa Consumer has grown its revenue from operations at a CAGR of 80.14% between FY 2021 and 2023 (from INR 459.99 crore in FY 2021 to INR 1,492.75 crore in FY 2023), while the median revenue CAGR of all other BPC companies for which data was available for the relevant period was 28.00%.

The Objectives of the Issue

  • Advertisement expenses towards enhancing the awareness and visibility of the company’s brands;
  • Capital expenditure to be incurred by the Company for setting up new EBOs;
  • Investment in the company’s Subsidiary, Bhabani Blunt Hairdressing Private Limited (“BBlunt”) for setting up new salons; and
  • General corporate purposes and unidentified inorganic acquisition.

Honasa Consumer IPO Timetable

IPO Opening date31 October 2023
IPO Closing02 November 2023
Basis of Allotment07 November 2023
Initiation Refund08 November 2023
Credit to Demat Account09 November 2023
Listing Date10 November 2023
(Cut-off time for UPI mandate confirmation – 5 PM on November 2, 2023)

Honasa Consumer IPO details

Issue typeBook Built Issue IPO
IPO issue size₹1,701.44 Cr – 53,098,811 shares
Fresh Issue₹365 Cr
Offer for sale₹1,336.44 Cr
Face value₹10 per share
Price Band ₹308 to ₹324 per share
Lot size46 Shares
Employee discount₹30 per share
Shareholding pre-issue310,479,227
Shareholding post-issue321,744,659
Listing ExchangeBSE & NSE

Honasa Consumer IPO Lot Size

Retail (Min)146₹14,904
Retail (Max)13598₹193,752
S-HNI (Min)14644₹208,656
S-HNI (Max)673,082₹998,568
B-HNI (Min)683,128₹1,013,472

Honasa Consumer IPO Reservation Details

QIB Shares Offered75%
NII (HNI) Shares Offered15%
Retail Shares Offered10%

Honasa Consumer Financial Performance

 FY 2021FY 2022FY 2023Q1 FY 2024
Net income(1,332.22)14.44(150.97)24.72
Margin (%)(289.62)1.53(10.11)5.32
(Amount in ₹ Crores)

Honasa Consumer Valuations & Margins

FY 2021FY 2022FY 2023
PE ratio
RONW (%)NA2.23(23.57)
EBITDA (%)(290.01)1.211.52

Company Promoters

  • Varun Alagh
  • Ghazal Alagh

Promoter Holding

Pre Issue Share Holding37.41%
Post Issue Share Holding35.34%

Lead Manager(s)

  • Kotak Mahindra Capital Company Limited
  • Citigroup Global Markets India Private Limited
  • Jm Financial Limited
  • J.P. Morgan India Private Limited

Honasa Consumer Registrar

Selenium Tower – B, Plot 31 & 32, Gachibowli,
Financial District, Nanakramguda, Serilingampally,
Hyderabad – 500 032, Telangana
 +91 40 6716 2222

Contact Details

27BKC, 1st Floor, Plot no. C-27,
‘G’ Block, Bandra Kurla Complex,
Bandra (East), Mumbai 400 051
Phone: +91 22 4336 0000
Email: honasa.ipo@kotak.com
Website: www.investmentbank.kotak.com

Honasa Consumer IPO Allotment Status

Mamaearth IPO allotment will be available on the KFin Tech website. Click on this link to get allotment status.

Final thoughts

Honasa Consumer IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. study well about the company and subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.

Happy Investing

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