Honasa Consumer, which owns baby and mother care brand Mamaearth, Thursday filed its draft red herring prospectus (DRHP) with the markets regulator Securities and Exchange Board of India (Sebi) to raise funds through an initial public offering (IPO).
The proposed IPO comprises fresh equity shares aggregating up to Rs400 crore and an offer for sale (OFS) of up to 46,819,635 shares, according to the company’s DRHP.
The OFS includes the sale of up to 3,186,300 equity shares by promoter Varun Alagh and 100,000 equity shares by promoter Ghazal Alagh. Investors who will dilute their holdings include Evolvence India Fund III Ltd, Fireside Ventures Investment Fund –I, Stellaris Venture Partners India I, Snapdeal founder Kunal Bahl, Bollywood actress Shilpa Shetty Kundra, Rishabh Harsh Mariwala and Rohit Kumar Bansal, among others.
The net proceeds from the IPO will be utilized to improve brand visibility and awareness through advertisements, setting up new brand outlets, investing in subsidiary BBlunt for setting up new salons, general corporate purposes and inorganic growth. Mamaearth acquired BBlunt from Godrej Consumer Products Limited (GCPL) earlier this year.
Kotak Mahindra Capital, JM Financial, Citi Group Global Markets India, and JP Morgan are working as book-running lead managers on the IPO.
Founded by husband-wife duo Ghazal Alagh and Varun Alagh, Mamaearth claims to offer 100% toxin-free and natural baby care, skincare, and hair care products. Since its inception in 2016, Mamaearth has created a product portfolio of more than 140 products and claims to have reached over 5 million customers in 500 Indian cities. Its products are available on major e-commerce platforms like Amazon, Nykaa, and Flipkart and 30,000 points of sales across the country.
The company was last valued at over a $1 billion last December when it raised $37.5 million from investors including Sequoia and Belgium’s Sofina. In July 2021, the company raised $50 million led by European investment firm Sofina Ventures.
For the financial year ended March 2022, the company posted a net profit of Rs14 crore and revenue of Rs943 crore as compared to Rs456 crore in the previous fiscal.