Founded in 2016 by the husband-wife team of Varun and Ghazal Alagh, Honasa Consumer achieved unicorn status in January 2022.
IPO Dates:
The IPO is scheduled to be launched on October 31, with a pre-IPO placement set for October 30. The public issue will conclude on November 2.
IPO Details:
According to the red herring prospectus (RHP), MamaEarth, one of Honasa’s brands, plans to issue fresh shares worth Rs 365 crore. Additionally, there will be an offer for sale (OFS) of 41.25 million shares. It’s worth noting that the amount of fresh proceeds is lower than the Rs 400 crore initially proposed in the company’s DRHP filed in December of the previous year.
Stakeholders Participating in OFS:
Various stakeholders are participating in the OFS, including MamaEarth co-founders Varun Alagh and Ghazal Alagh, Fireside Ventures, Stellaris Venture Partners, Sofina, Snapdeal founders Kunal Bahl and Rohit Bansal, and brand ambassador Shilpa Shetty Kundra. However, Peak XV Partners (formerly Sequoia Capital) will not be participating in the OFS this time. Evolvence India, which initially planned to participate in the OFS, has also decided not to do so.
Ownership Distribution:
Peak XV Partners is the largest external shareholder with a 19.38% stake in the company. Fireside Ventures and Stellaris Venture Partners own 10.38% and 9.45% stakes, respectively. The co-founders of MamaEarth, Varun and Ghazal Alagh, collectively hold approximately 37.35% of the company’s stake.
Lead Managers:
The company’s red herring prospectus (RHP) states that the lead managers for its upcoming IPO are Kotak Mahindra Bank, Citigroup, JM Financials, and JP Morgan. These financial institutions will play a crucial role in managing the IPO process.
Financial Performance:
- For the fiscal year ending on March 31, 2023, Honasa’s revenue from operations grew significantly by 58.3%, reaching Rs 1,493 crore from Rs 943 crore in the previous fiscal year (FY22).
- The company’s profits declined by 71.4% in FY23, dropping to Rs 4 crore from Rs 14 crore in FY22. This decline excludes an exceptional item of Rs 154.6 crore related to the impairment loss on goodwill and other intangible assets. Without this exclusion, the company would have reported a net loss of Rs 151 crore.
Quarterly Results:
The company also disclosed its quarterly results for Q1 FY24, during which it generated Rs 464.49 crore in revenue from operations. This indicates the company’s financial performance for the first quarter of the fiscal year 2023-24.
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