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 name | Honasa Consumer Limited |
| Sector | Trading |
| Industry | Trading |
| Company Website | https://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 date | 31 October 2023 |
| IPO Closing | 02 November 2023 |
| Basis of Allotment | 07 November 2023 |
| Initiation Refund | 08 November 2023 |
| Credit to Demat Account | 09 November 2023 |
| Listing Date | 10 November 2023 |
Honasa Consumer IPO details
| Issue type | Book 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 size | 46 Shares |
| Employee discount | ₹30 per share |
| Shareholding pre-issue | 310,479,227 |
| Shareholding post-issue | 321,744,659 |
| Listing Exchange | BSE & NSE |
Honasa Consumer IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 46 | ₹14,904 |
| Retail (Max) | 13 | 598 | ₹193,752 |
| S-HNI (Min) | 14 | 644 | ₹208,656 |
| S-HNI (Max) | 67 | 3,082 | ₹998,568 |
| B-HNI (Min) | 68 | 3,128 | ₹1,013,472 |
Honasa Consumer IPO Reservation Details
| QIB Shares Offered | 75% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 10% |
Honasa Consumer Financial Performance
| FY 2021 | FY 2022 | FY 2023 | Q1 FY 2024 | |
| Revenue | 459.99 | 943.47 | 1,492.75 | 464.49 |
| Expenses | 1,796.71 | 941.91 | 1,501.61 | 443.14 |
| Net income | (1,332.22) | 14.44 | (150.97) | 24.72 |
| Margin (%) | (289.62) | 1.53 | (10.11) | 5.32 |
Honasa Consumer Valuations & Margins
| FY 2021 | FY 2022 | FY 2023 | |
| EPS | (98.35) | 0.52 | (4.66) |
| PE ratio | – | – | – |
| RONW (%) | NA | 2.23 | (23.57) |
| NAV | NA | 23.42 | 19.27 |
| EBITDA (%) | (290.01) | 1.21 | 1.52 |
| Debt/Equity | – | – | – |
Company Promoters
- Varun Alagh
- Ghazal Alagh
Promoter Holding
| Pre Issue Share Holding | 37.41% |
| Post Issue Share Holding | 35.34% |
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
KFIN TECHNOLOGIES LIMITED
Selenium Tower – B, Plot 31 & 32, Gachibowli,
Financial District, Nanakramguda, Serilingampally,
Hyderabad – 500 032, Telangana
Phone: +91 40 6716 2222
Email: hcl.ipo@kfintech.com
Website: www.kfintech.com
Contact Details
KOTAK MAHINDRA CAPITAL COMPANY LIMITED
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
