MamaEarth aims to use the capital for advertising spend, capital expenditure in exclusive brand outlets and investing in its brand BBlunt to set up new salons.
Honasa Consumer Pvt Ltd, which operates direct-to-consumer brands Mamaearth and The Derma Company, is looking to raise around ₹2,900 crore through an initial public offering (IPO).
The IPO will comprise a fresh issue of ₹400 crore and an offer for sale (OFS) of up to 46.82 million shares, according to the draft red herring prospectus (DRHP) filed with the Securities and Exchange Board of India (Sebi) on Thursday. ,
According to a person familiar with the development, the OFS will be around ₹2,500 crore.
The Mamaearth parent may consider a pre-IPO placement of up to ₹80 crore, in which case the amount to be raised from the fresh issue will be deducted.
MamaEarth investors including Sofina Ventures, Stellaris, Fireside Ventures and Evolve are looking to partially exit through the IPO. Fireside currently holds approximately 10.4% stake in the firm, Sofina holds approximately 9.5%, while Stellaris holds approximately 9.5%.
Varun Alagh, who currently holds 34.3% stake in the company, will sell around 3% of his holding. Ghazal Alagh, which has a stake of about 3.2%, aims to reduce its stake to about 1%.
Investors like Kunal Bahl, Snapdeal co-founder Rohit Bansal, Bollywood actor Shilpa Shetty Kundra, Rishabh Mariwala of Sharp Ventures will also dilute their stake through the IPO.
Kotak Mahindra Capital, Citigroup Global Markets India, JP Morgan India, JM Financial are the book running lead managers to the issue.
The Gurugram-based firm, started by husband-wife duo Ghazal and Varun Alagh in 2016, is backed by marquee investors including California-based Sequoia Capital, Sofina Ventures, a Belgium-based investment firm and Evolves, a UAE-based fund. It entered the January 2022 unicorn club earlier this year when it raised $52 million as a part of its Series F funding round.
Honasa Consumer said in its DRHP that the company aims to use the capital for advertising spend (₹186 crore), capital expenditure in exclusive brand outlets (₹34.23 crore) and to invest in its brand BBlunt (₹27.5 crore) to set up new salons Is.
The remaining ₹152.2 crore will be used for general corporate purposes and for undisclosed inorganic acquisitions.
Honsa Consumer, initially started with the launch of Mamaearth, has over the years added many more brands including The Derma Company, Aqualogica, Ayuga, Bubalant and Dr. Seth, to build on its 'House of Brands' architecture. align with the vision.
It has a portfolio of approximately 140 products under the Mamaearth brand, and over 40 items under the Derma Company.
In the year ending March 2022, the company doubled its revenue from operations to ₹943 crore, as against ₹456 crore in the previous fiscal. It reported a profit of ₹14.4 crore in FY22.
No comments:
Post a Comment