Honest Consumer Ltd, the parent company of Mamaearth, has announced its initial public offering (IPO) set to open on Monday, October 31, and close on Wednesday, November 2. The IPO price band is set at ₹308-₹324 per share, with allocations for anchor investors planned for Sunday, October 30. The shares are currently trading at a Grey Market Premium (GMP) of ₹30.
The offering involves a fresh issue of ₹365 crore and an offer for sale of up to 41.25 million shares, aiming to raise ₹1,701.44 crore at the upper price band. This valuation would bring the firm's total worth to ₹10,424.53 crore.
High-profile investors are expecting substantial returns from this IPO. Among them is Shilpa Shetty Kundra, who plans to offload 5,54,700 shares that she initially purchased at ₹41.86 each. If these shares sell at the upper price band of ₹324, her gross earnings will total ₹17,97,22,800. After deducting her initial investment of ₹2,32,19,742, her net gain will be about ₹15.65 crore.
Other shareholders include Snapdeal co-founders Kunal Bahl and Rohit Bansal, Rishabh Harsh Mariwala, Varun Alagh, Ghazal Alagh, Fireside Ventures Fund (expecting 44.2x gains), Sofina (eyeing about a 3x return), and Stellaris. These investors anticipate returns ranging from 8x to over 100x and 53x respectively.
Despite Honasa's impressive revenue growth at a compound annual growth rate (CAGR) of 80.14 percent during FY21-FY23, it registered a net loss of ₹142.8 crore in FY23. This financial data will likely be a key factor for potential investors as they consider the company's valuation and growth prospects.
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