Parent Company of Mamaearth, Honasa Consumer, Submits Final Prospectus, Aims for Tentative November 10 Listing Date
- ByStartupStory | November 5, 2023
Honasa Consumer, the parent company of well-known brands like Mamaearth, The Derma Co., and Aqualogica, has filed its final prospectus for its upcoming listing, scheduled for November 10. This move follows a strong response to its initial public offering (IPO). The company’s IPO, which began on October 31 and closed on November 2, started slowly, with only 13% of shares subscribed on the first day. However, it gained significant traction by day three, with the IPO being oversubscribed by 7.62 times.
Institutional investors showed keen interest, bidding for 22 crore shares against an offer of 2.8 crore shares. Honasa aims to raise Rs 1,701 crore through the IPO, comprising Rs 365 crore in fresh issuance and an offer for sale of 4.13 crore shares. The price band for the IPO has been set at Rs 308 to Rs 324.
Honasa Consumer, founded by the entrepreneurial couple Ghazal and Varun Alagh, is targeting the Indian beauty and personal care (BPC) market, valued at $20 billion and projected to grow at an annual rate of 11%, reaching $33 billion by 2027. The company’s success is attributed to its agility, innovation, online focus, and new-age approach, which have allowed Indian new-age pure-play BPC brands to scale rapidly, as noted by Emkay Research.
The IPO received investments from a range of notable investors, including Abu Dhabi Investment Authority, Smallcap World Fund, Fidelity Funds, Goldman Sachs, Government Pension Fund Global, and Carmignac Portfolio, raising Rs 765.2 crore on October 30.
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The company had previously stated that it plans to use some of the proceeds for strategic acquisitions to expand its portfolio of in-house brands. The founders have emphasized their commitment to acquiring brands with a focus on consumer preferences. Allotment of shares is expected to take place on November 7, further contributing to the company’s growth in the dynamic BPC market.
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