Funding Alert

Mamaearth’s Parent Company Secures Rs 765.2 Crore from Anchor Investors Prior to IPO Launch

• ByStartupStory     |    October 31, 2023

Mamaearth’s parent company, Honasa Consumer, successfully raised a substantial sum of Rs 765.2 crore from a group of 49 anchor investors on October 30, just one day prior to the commencement of its eagerly awaited initial public offering (IPO). These anchor investors secured their allocation at a per-share price of Rs 324, with a face value of Rs 10. Notable participants in this anchor investment round included prominent entities such as Fidelity Funds, Abu Dhabi Investment Authority, Smallcap World Fund, Government Pension Fund Global, Carmignac Portfolio, and Goldman Sachs.

Participating in this significant move were several Indian mutual fund companies, further highlighting the considerable interest generated by Honasa Consumer’s IPO. These mutual funds included ICICI Prudential Mutual Fund, Aditya Birla Sun Life Trustee, Nippon Life India, Axis Mutual Fund, Whiteoak Capital MF, Invesco, and Franklin Templeton Investment Funds, demonstrating the diverse range of investor interest in the offering.

The Honasa Consumer IPO, scheduled to open on October 31 and close on November 2, represents a combination of an offer for sale (OFS) and the issuance of fresh shares to investors, with an impressive issue size of Rs 1,701 crore. The price band for the shares in this offering is set at Rs 308-324 per share.

Within this comprehensive IPO, a significant portion of Rs 365 crore worth of fresh shares will be made available to investors, with 4.13 crore equity shares being offered for sale by both the company’s promoters and existing investors. Remarkably, the founders of Honasa Consumer, Ghazal Alagh and Varun Alagh, are also poised to contribute a portion of their shares to this public offering, underscoring their commitment to the company’s growth and success.

This IPO marks a pivotal moment for Honasa Consumer, coming at a time when the stock markets are navigating challenging and turbulent conditions. Notably, it is the first instance this year of an Indian startup entering the public markets, adding an extra layer of significance to the offering. It’s worth mentioning that the company has scaled down its IPO size by 10%, and the valuation remains consistent with its private entity status.

Honasa Consumer serves as the parent company for a portfolio of six prominent brands, including Mamaearth, The Derma Co, Dr. Sheth’s, Aqualogica, BBlunt, and Ayugac. These brands originated from a mission to create safe and toxin-free products, primarily targeted at children. Over the span of seven years, the Mumbai-based company has successfully diversified into skincare, beauty, and haircare segments, further solidifying its presence in the market.

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