- By Vaamanaa Sethi
- Wed, 25 Oct 2023 04:10 PM (IST)
- Source:JND
Honasa Consumer Ltd, parent company of Mamaearth and The Derma Co., is gearing up to hit the dalal street by launching its initial public offering (IPO) by late October or early November.
According to media reports, the personal care company has been anticipating to go public for nearly a year now. Honasa Consumer filed Draft Red Herring Prospectus (DRHP) in December 2022.
The company plans to raise over Rs 1,700 crore via public issue with Rs 400 crore allocated to fresh issue and the remaining amount earmarked for an offer for sale by existing shareholders.
As per industry sources, the equity issuance could be around 15%, leading to an estimated valuation of around Rs 11,000-Rs 11,500 crore. It's worth noting that this valuation is considerably less than the previously rumored amount, which had surpassed Rs 22,000 crore.
According to Moneycontrol report, Varun Alagh, Ghazal Alagh, Fireside Ventures Fund, Sofina, Stellaris, Kunal Bahl, Rishabh Harsh Mariwala, Rohit Kumar Bansal, and Shilpa Shetty Kundra are the selling shareholders in the OFS.
Out of the net proceeds generated from the new issue, the company will allocate Rs 182 crore for advertising expenses and Rs 20.6 crore for the establishment of new Exclusive Brand Outlets (EBOs). Additionally, it plans to invest Rs 26 crore in its subsidiary, Bhabani Blunt Hairdressing (BBlunt), to establish new salons. The remaining funds will be earmarked for general corporate purposes and potential unidentified inorganic acquisitions.
In the fiscal quarter of June FY24, the net profit amounted to Rs 25.96 crore, marking a substantial improvement from the loss of Rs 9.3 crore recorded during the same period in the previous fiscal year. Concurrently, revenue from operations for the same period witnessed a robust 49 percent increase, reaching Rs 464.5 crore.