New Delhi: Mamaearth, the renowned brand under the capable leadership of Honasa Consumer, is venturing into the world of Initial Public Offerings (IPOs) with great promise. This financial extravaganza offers a share price range from ₹308 to ₹324, each share holding a face value of ₹10. Investors are warmly invited to embark on this captivating journey as the Mamaearth IPO subscription window opens on Tuesday, October 31, and gracefully concludes on Thursday, November 2. Prior to this grand event, the allocation of shares to anchor investors for the Honasa Consumer IPO will be revealed on the distinguished date of Monday, October 30.
A Stellar Offering
The Mamaearth IPO takes centre stage with an exceptional offering. It involves the sale of approximately 4.12 crore shares, accompanied by a fresh issuance of up to ₹365 crore in newly minted shares. With high expectations of a resounding outcome, the company envisions raising an impressive ₹1,701.44 crore at the upper end of the price spectrum. This remarkable achievement is poised to elevate the company’s valuation to a significant ₹10,424.53 crore, infusing an air of grandeur into this IPO extravaganza.
Eminent Figures in the Spotlight
In the limelight of the Mamaearth IPO, a constellation of eminent figures is prepared to play their roles in this financial galaxy. Varun Alagh, the dynamic Honasa promoter, is set to part with 3,186,300 of his shares, while his spouse, Ghazal Alagh, contemplates offering up to 100,000 of her own. Complementing this stellar cast are other notable shareholders such as Kunal Bahl, the illustrious Shilpa Shetty Kundra, Rishabh Harsh Mariwala, Fireside Ventures Fund, Sofina, Stellaris, and the visionary Rohit Kumar Bansal, all poised to make their contributions in the Offer for Sale (OFS).
A Captivating Narrative
The Mamaearth IPO narrative unfolds with a fascinating twist. The initial script, as outlined in the draft red herring prospectus, featured a fresh issue of equity shares valued at ₹400 crore in conjunction with an OFS involving 4.68 crore equity shares divested by promoters, investors, and other sellers.
However, during a significant press conference, when the media inquired about the reduction in the offering size, the company provided its perspective. They emphasized that the decision was based on their belief that the OFS segment did not resonate as strongly with investors at the proposed price. Evidently, investors held a differing perspective, leading to the pivotal adjustment in the IPO’s size.
Key Players and Important Dates
The Mamaearth IPO brings together a team of distinguished book-running lead managers, including Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, JM Financial Limited, and J.P. Morgan India Private Limited, all orchestrating a symphony of financial opportunities. The registrar for this momentous occasion is Kfin Technologies Limited.
Investors are encouraged to mark their calendars for Tuesday, November 7, when the allocation for the Honasa Consumer IPO is expected to culminate, promising an exciting denouement. This captivating financial spectacle is poised to make its debut on the grand stages of both the BSE and NSE, with a tentative listing date set for Friday, November 10, ensuring a spectacular opening act.
The company’s financial performance reveals a remarkable transformation in Q1-FY 2024. It achieved a net profit of ₹24.71 crore, a significant turnaround from a net loss of ₹151 crore in FY 2023 and ₹11.52 crore in Q1-FY 2023. With a gross profit margin of 17.03% in Q1-FY 2024, the stage is perfectly set for substantial profits driven by cost efficiency. The company is poised for an upward trajectory in profitability thanks to an efficient business model and the leverage it has gained through operations.