Honasa Consumer IPO Mamaearth is about to launch its IPO in the stock market. The company is opening its IPO for investors on 31 October 2023. The price band of this IPO is Rs 308 to Rs 324 per share. Honasa Consumer Limited has been bought by Mamaearth. The company is issuing an IPO of Rs 365 crore.
Mamaearth IPO:
Honasa Consumer Ltd, bought by Mamaearth and The Darma Company, is about to launch its IPO for investors. The company is launching its IPO for investors on 31 October 2023. This IPO will close on 2 November 2023. At the same time, the IPO will open for anchor investors on 30 October 2023. Let us know in detail about the company’s IPO.
About IPO
The company has fixed the price band of its IPO at Rs 308 to Rs 324 per share. The company is issuing an IPO of Rs 365 crore. The company will issue 4.12 crore shares in the Offer for Sale (Offer for Sale).
The lot size of Mamaearth IPO is 46 equities. This means that investors can invest in multiples of minimum 46 shares and maximum 46 equity shares to invest in this IPO.
The company’s IPO has reserved at least 75 percent shares for QIBs, 15 percent for NII and 10 percent for retail investors. The company will give a discount of Rs 30 to its employees.
Objective of IPO
The company will use the funds raised from this IPO to fund the brand’s advertising expenses, setting up new exclusive brand outlet and new salons. Apart from this, the company will use it for investment, general corporate purposes and various financial purpose. The company will also use it for awareness.
Financial Snapshot
In the June quarter, the company’s revenue from operations increased by 49% compared to the previous year, reaching Rs 464.49 crore. Their net profit for the quarter was Rs 9.24 crore, a significant improvement from the Rs 2.51 crore loss reported in the same period last year.
Credit: Google
This growth is primarily attributed to increased sales of their flagship brand, Mamaearth. The company attributed its increased revenue in FY23 to higher sales of Mamaearth products in various categories, including face care, hair care, body care, baby care, and color care.
The company largely depends on the sales of its flagship Mamaearth brand for the majority of its operational revenue. A decline in demand for Mamaearth products could negatively impact the company’s business, cash flow, and financial performance.
About the company
- Founded in 2016 by Roon and Ghazal Alagh.
- Headquarter in Gurugram, India.
- Began with the brand Mamaearth.
- Expanded its portfolio with five additional brands: The Derma Company, Aqualogica, Ayuga, Beeblunt, and Dr Sheth.
- Achieved unicorn status in the previous year.
In Conclusion: Mamaearth is going to sell part of its company to the public. They are asking people to buy their shares at a price between Rs 308 and Rs 324 per share. They want to raise Rs 365 crore. They will use this money to make their brand bigger and do more advertising. Mamaearth has been doing well, and this is a way for them to get more money to grow even more.