Baby and mother care brand Mamaearth’s parent firm Honasa Consumer Ltd has raised $92 million (Rs 765.2 crore) from anchor investors, ahead of its initial public offering.
Investors including Abu Dhabi Investment Authority, Fidelity, Norges Bank, Invesco, Goldman Sachs, CDPQ, White Oak, Franklin Templeton, Kotak, DSP, Carmigniac Gestion, Loomis Sayles, Matthews, Pictet and Hornbill were issued the shares.
Honasa Consumer IPO opened on Tuesday and it will remain open till Nov. 2. The company has fixed the IPO price at Rs 308 to Rs 324 per equity share.
The promoters of the company aim to raise Rs 1,701 crore ($205 million) from their public offer.
According to media reports, the company was earlier targeting a valuation of $3 billion. However, now the company has adjusted its expectations to around $1.25 billion.
The list of investors also included seven mutual funds: ICICI Prudential, Aditya Birla Sun Life, Nippon, Axis Mutual Fund, Whiteoak Capital, Invesco, and Canara Robeco.
In RHP, MamaEarth disclosed that its co-founders Varun Alagh and Ghazal Alagh will sell part of their stakes in the firm whereas early backers including Fireside Ventures, Stellaris Venture Partners, Sofina will sell 7.97 million, 9.56 million and 10.94 million shares during the initial public offer.
The company posted a profit after tax of Rs 24.3 crore during Q1 FY24. Its EBITDA margin stood at 8.77% in the first quarter of the current financial year.
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 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.
In March this year, Mamaearth put its IPO on hold because of weak market conditions, Reuters reported.