Mamaearth parent raises Rs 765.2 Cr from anchor investors ahead of IPO

The anchor investors were allocated shares at a price of Rs 324 per share, which is at the higher end of Honasa Consumer's IPO price band.

Thimmaya Poojary 2059 Stories

Monday October 30, 2023 , 2 min Read

Mamaearth parent Honasa Consumer raised Rs 765.2 crore from 49 investors on October 30, a day ahead of the opening day of its initial public offering (IPO).

The anchor investors were allocated at a price of Rs 324 per share with a face value of Rs 10. Investors including Fidelity Funds, Abu Dhabi Investment Authority, Smallcap World Fund, Government Pension Fund Global, Carmignac Portfolio, and Goldman Sachs participated in the round.

Indian mutual fund companies like ICICI Prudential Mutual Fund, Aditya Birla Sun Life Trustee, Nippon Life India, Axis Mutual Fund, Whiteoak Capital MF, Invesco, and Franklin Templeton Investment Funds were among the entities which participated in this anchor issue.

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The IPO of Honasa Consumer, which will open on October 31 and close on November 2, will be a mix of offer for sale (OFS) and issuance of fresh shares to the investor with an issue size of Rs 1,701 crore at a price band of Rs 308-324 per share.

The fresh issuance of shares is worth Rs 365 crore and the offer for sale will be for 4.13 crore equity shares by both the promoters and investors. The promoters of the beauty and personal care company—Ghazal Alagh and Varun Alagh—will also be tendering some part of their shares in the IPO.

The IPO of Honasa Consumer comes at a challenging time when the stock markets are in a turbulent territory. This is also the first time this year that a company from the Indian startup ecosystem is entering the public markets.

The company has trimmed its IPO size by 10% and valuation is also at the same level as what it had achieved when it was a private entity.

Honasa Consumer is the parent to six brands, namely Mamaearth, The Derma Co., Dr Sheth’s, Aqualogica, BBlunt, and Ayuga, which were born out of the need to create safe and toxin-free products for children. Seven years later, the Mumbai-based company has diversified into skincare, beauty and haircare.