Price Band fixed at Rs 308 to Rs 324 per Equity Share of face value of Rs10 each
FinTech BizNews Service
Mumbai, 26 October, 2023: Honasa Consumer Limited (“HCL” or the “Company”), proposes to open on Tuesday, October 31, 2023, an initial public offer of equity shares of face value of Rs10 each (“equity shares”) of Honasa Consumer Limited (“Company” or “Issuer”). The company has turnaround in the Q1-FY 2024 reporting net profit of Rs24.71 crore against net loss of Rs11. 52 crores in Q1-FY 2023 and net loss of Rs151 crores in FY 2023. Company’s flagship brand, Mamaearth, is built to service a core customer need for safe-to-use, natural products, and focuses on developing toxin-free beauty products made with natural ingredients. According to the RedSeer Report, as of the Financial Year 2023, Mamaearth has emerged as the fastest growing BPC brand in India to reach an annual revenue of Rs10 billion (in the preceding 12 months) within six years of launch.
The gross profit margin of 17.03 % in Q1-FY 2024 allows a high profit poll to leverage as cost efficiency set in. The company is on the cusp of increase in profitability trajectory with business model efficiency and operating leverage setting in. The total offer size comprises of fresh issue aggregating up to Rs 365 crore Equity Shares and Offer for Sale (OFS) of up to 41,248,162 Equity Shares by Selling Shareholders. (“The Total Offer Size”). 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. The Offer will close on Thursday, November 2, 2023.
The Price Band of the Offer has been fixed at Rs 308 to Rs 324 per Equity Share. Bids can be made for a minimum of 46 Equity Shares and in multiples of 46 Equity Shares thereafter. Discount of Rs 30 per equity share is being offered to eligible employees bidding in the employee reservation portion
The Company, as part of the Objects of the Offer, proposes to utilize the Net Proceeds raised through the Fresh Issue towards (i) Advertisement expenses towards enhancing the awareness and visibility of brands, (ii) Capital expenditure to be incurred by Company for setting up new EBOs, (iii) Investment in its Subsidiary, Bhabani Blunt Hairdressing Private Limited (“BBlunt”) for setting up new salons; and (iv) General corporate purposes and unidentified inorganic acquisition. (Collectively, the “Objects”).
Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, JM Financial Limited and J.P. Morgan India Private Limited are the Book Running Lead Managers to the offer.
