Honasa Consumer Ltd, the Gurugram-based parent company of brands such as Mamaearth and The Derma Co, is set to launch its initial public offering (IPO) on Monday, October 31, according to the red herring prospectus. The IPO, which closes on November 2, includes a fresh issue of Rs 365 crore ($49 million) shares and an offer-for-sale (OFS) of 4.12 crore shares.
The shares offered in the IPO are from various stakeholders, including founders Varun and Ghazal Alagh, Fireside Ventures Fund, Sofina, Stellaris, Kunal Bahl, Rohit Kumar Bansal Rishabh Harsh Mariwala, and Shilpa Shetty Kundra. The price band for the IPO is yet to be disclosed.
The anchor book for the IPO will open on Sunday, October 30, with equity share allotment expected to be finalized by November 7. Shareholders can expect their shares to be credited to their demat accounts by November 9 before listing on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on November 10.
The company intends to use the funds raised from the IPO towards advertising expenses (Rs 182 crore), creating exclusive brand outlets (Rs 20.6 crore), investing in BBlunt for new salons (Rs 26 crore), general corporate purposes, and inorganic acquisitions. Promoters currently hold a 37.41% stake in the company.
Honest Consumer Ltd was established in 2016 and operates with a 'House of Brands' architecture that includes brands like Mamaearth, The Derma Co, Aqualogica, Ayuga, and Dr Sheth among others. The company entered the unicorn club in 2022.
Kotak Mahindra Capital Company, Citigroup (NYSE:C) Global Markets India, JM Financial, and JP Morgan India Pvt Ltd have been appointed as the lead managers for the IPO, with KFin Technologies serving as the registrar.
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