Mamaearth IPO to open on October 31
Honasa Consumer Private Limited, the company behind well-known brands such as Mamaearth, The Derma Co, and BBlunt, has announced that its initial public offering (IPO) will commence on October 31. As the first unicorn of 2022, this rapidly expanding direct-to-consumer (D2C) business has made a name for itself in the beauty, baby care, and skincare sectors. The company received the green light for its IPO from market regulator SEBI in August, after submitting draft documents in December 2022.
Rs. 1,700 crore IPO backed by Sequoia Capital
The IPO, backed by US-based venture capital firm Sequoia Capital, aims to raise approximately Rs. 1,700 crore through a mix of fresh issue and offer-for-sale, targeting an estimated valuation of around Rs. 10,500 crore. The anchor book for the issue will be available for one day on October 30, with the public offering closing on November 2. The IPO is scheduled to list on both NSE and BSE on November 10.
One of the largest IPOs by a D2C company
The highly anticipated IPO of Honasa Consumer marks a significant achievement for the Indian start-up landscape, as it represents one of the largest IPOs by a D2C company. Mamaearth, a prominent beauty and skincare brand under Honasa Consumer, has experienced rapid growth in recent years. The success of this IPO could potentially set the stage for other D2C start-ups to follow in its footsteps and enter the public market.
Financial performance
As of March 31, 2022, the company's assets have increased significantly to ₹1,035.01 crore, up from Rs. 302.64 crore in 2021 and Rs. 181.01 crore in 2020. The company recorded Rs. 964.35 crore in revenue in 2022, more than doubling from Rs. 472.10 crore in 2021. The company's profit after tax, which was in the negative at Rs. 1,332.21 crore in 2021, has made a remarkable turnaround, becoming positive at Rs. 14.55 crore in 2022.
IPO objectives
The company intends to use the net proceeds for several purposes, including boosting brand awareness through advertising and funding capital expenditures for establishing new Exclusive Brand Outlets (EBOs). The company also intends to invest in its subsidiary, Bhabani Blunt Hairdressing Private Limited ("BBlunt"), for setting up new salons, and also for covering general corporate needs and potential unidentified inorganic acquisitions.
