Mamaearth IPO: Shilpa Shetty Eyes 8x Returns, Snapdeal Co-founders Anticipate 100x!
- ByStartupStory | October 27, 2023
The parent company of Mamaearth, Honasa Consumer Ltd, has revealed a price range of Rs 308-324 per share for its upcoming initial public offering (IPO), scheduled to open on October 31. Notably, Bollywood actress Shilpa Shetty Kundra, one of the selling shareholders in the IPO, is poised to realize an impressive 8x return on her investment, with an average acquisition cost of Rs 41.86. Shilpa Shetty will be offering approximately 1,393,200 shares in the offer-for-sale section.
In contrast, Snapdeal co-founders Kunal Bahl and Rohit Bansal, who initially invested in Honasa in 2018, are set to divest 1,193,250 equity shares each. Their initial acquisition cost was a mere Rs 3.21 per share, translating to a remarkable return on investment of over 100x.
Additionally, Rishabh Harsh Mariwala from Marico had an average acquisition cost of Rs 6.05 per share, positioning him for a substantial return of 53x.
The anchor portion of the IPO will become available on October 30, and the offering will conclude on November 2.
The IPO comprises a fresh issue of Rs 365 crore along with an offer for sale of up to 41.25 million shares. At the upper end of the price band, the company is poised to raise approximately Rs 1,701.44 crore, thereby establishing a valuation of Rs 10,424.53 crore.
Aside from the mentioned individuals, other selling shareholders in the offer for sale include Varun Alagh, Ghazal Alagh, Fireside Ventures Fund, Sofina, and Stellaris. Varun and Ghazal Alagh, as co-founders, have a negligible cost of acquisition, as outlined in the prospectus. The Fireside Ventures Fund achieved a cost of acquisition of Rs 7.33, resulting in a gain of 44.2x at the upper end of the price range. Similarly, Stellaris’ cost of acquisition aligned with that of Fireside Ventures Fund.
On the other hand, Belgium-based Sofina fund’s average cost of acquisition was Rs 112.07, indicating a return on investment of around 3x.
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Honasa Consumer, the owner of a brand portfolio that includes Mamaearth, The Derma Co, Aqualogica, Ayuga, and BBlunt, asserts its position as India’s largest digital-first beauty and personal care (BPC) company based on revenue for FY23. The company experienced substantial growth in revenue from operations, with a CAGR of 80.14 percent from FY21 to FY23, resulting in FY23 revenue of Rs 1,492.75 crore. However, during the fiscal year ending in March FY23, the company reported a net loss of Rs 142.8 crore.
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