Mamaearth's Parent Company is Expected to Go Public Next Week

By Consultants Review Team Monday, 23 October 2023

Mamaearth's parent business, Honasa Consumer, may file for an initial public offering (IPO) by the end of this month. According to Moneycontrol, the much-anticipated edition is set to hit Dalal Street on October 31. The corporation, however, did neither confirm or deny the report.

Honasa Consumers filed a draft red herring prospectus with the capital markets regulator Sebi in December 2022, and received regulatory approvals in August of this year. The D2C unicorn specializes in beauty, babycare, and skincare.

According to the news, which cites sources, there is strong interest in Mamaearth's initial public offering (IPO), which will commence on Tuesday, October 31. The issue's anchor book will open on Monday, October 30, and the firm will not raise funds through pre-IPO placement, according to the company.

As of Monday, October 23, the corporation has not claimed any premium in the grey market. However, some inquiries were made with the dealers, who sought anonymity. However, the action may intensify in the next few days as more information and specifics regarding the matter become public.

However, the paper, citing sources, shed some information on the values and issue size. It stated that the business intends to raise approximately Rs 1,700 crore through the IPO route, including both fresh issue and offer-for-sale, at an estimated valuation of approximately Rs 10,500 crore.

Honasa Consumer, launched in 2016 by Varun and Ghazal Alagh, became a unicorn in January 2022. Sequoia Capital, a global venture capital firm, has invested $52 million in the company, valuing it at $1.2 billion. However, there was some debate about valuations after Reuters reported that the company was aiming for a $3 billion (Rs 22,000 crore) valuation, which triggered a debate on social media.

The investment banks working on the IPO include Kotak Mahindra Capital, JM Financial, Citi, and JP Morgan, while the legal advisors are Cyril Amarchand Mangaldas, IndusLaw, and Khaitan & Company. The mega issue's registrar is KFin Technologies.


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