HomeBusinessIPO to put on hold by Mama-earth's parents.

IPO to put on hold by Mama-earth’s parents.

What’s the news?

In the market of rumors, there’s news floating that Mamaearth’s parent company Hosana Consumer Limited, a skincare company, was planning to lay down its IPO in the market. But seeing the market condition, they have decided to put a hold on this.

mamaearth IPO
Credit: Google

Why put a hold?

Honasa Consumer Limited, the owner of Mamaearth, a prominent skincare company in India, has reportedly suspended its initial public offering (IPO) as per a recent report by Reuters, a media agency. As mentioned in the report, sources informed Reuters that the decision was taken due to unfavorable market conditions. The report also highlights that the company is adopting a cautious approach and monitoring global market dynamics before taking further action.

According to sources, Mamaearth had originally planned to commence initial talks with investors and initiate marketing for the IPO by the end of January; however, this has yet to occur. During informal discussions with investors, it was revealed that there was a disparity between the company’s desired valuation and what the investors were willing to provide.

Credit: Google

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The deadline for approval from the Securities and Exchange Board of India (SEBI) and the final prospectus filing is December. Despite the delay, Mamaearth still intends to list. The company will reassess market conditions with the possibility of initiating the marketing process by October, should there be an improvement in market sentiment, as per the sources. A professional tone was used to convey the details.

Honasa Consumer submitted its draft red herring prospectus in December of last year. The company had proposed a new equity share issue totaling Rs 400 crore and an offer for sale (OFS) of up to 46,819,635 shares.

Credit: Google

A group of investors who will put their shares up for sale in the OFS include not only the two promoters Varun Alagh and Ghazal Alagh, but also actor Shilpa Shetty Kundra, Rohit Kumar Bansal, Sofina Ventures, and Kunal Bahl.

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Indian skincare market

According to the latest report, the skincare market in India garnered an estimated worth of $2.6 billion in 2021, with a projected Compound Annual Growth Rate (CAGR) of over 10% during the forecast period. In terms of both value and volume, the facial care category dominated the market in 2021 and is predicted to exhibit the fastest value and volume expansion, followed by body care and make-up remover categories. Convenience stores stand as the major distribution channel for the Indian skincare market. Moreover, flexible packaging has been identified as the most commonly used pack material. Mumbai is the largest skincare market in India, trailed by Delhi and Kolkata.

The report renders valuable insights concerning lucrative markets, consumption patterns of packaging materials, category-wise distribution data, and market shares of companies operating in the skincare market of India.

According to recent industry data, Mumbai, Delhi, Kolkata, Bangalore, Chennai, Hyderabad, Ahmadabad, Pune, Jaipur, and Kochi are the top ten cities in the Indian skincare market. Mumbai has become the largest skincare market in the country, followed closely by Delhi and Kolkata. From 2016 to 2021, Jaipur had the highest growth rate in this sector, while Kolkata’s growth was comparatively slower.

Credit: Google

Unilever, L’Oreal S.A., Reckitt Benckiser Group plc, Amway Corporation, Emami Limited, Oriflame Cosmetics S.A., Piramal Enterprises, The Himalaya Drug Company, Pfizer Inc., and Zydus Wellness Ltd are among the top players in the skincare market in India. In terms of value, Unilever stands as the leading company.

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