Mamaearth Niacinamide & Ginger Bamboo Sheet Mask
The owner of the popular Mamaearth brand, Honasa Consumer Limited, filed its Draft Red Herring Prospectus (DRHP) on Thursday
Honasa Consumer Private Ltd, the first unicorn of 2022 and the parent company of brands such as Mamaearth, The Derma Co and BBlunt has submitted design papers to Sebi for listing to raise funds through a combination of a new release and an offer for sale.
The owner of the popular Mamaearth brand, Honasa Consumer Limited, filed its Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) on Thursday to raise funds through an IPO.
The company intends to raise funds through an offering of shares (par value Rs10 each) through the public offering. Mamaearth’s IPO consists of a new share issue for an aggregate amount of ₹400 crore and an offer for sale (OFS) of up to 46,819,635 shares by selling shareholders.
The OFS consists of – up to 3,186,300 shares of promoter Varun Alagh and up to 100,000 shares of promoter Ghazal Alagh together with Evolvence India Fund III Ltd, Fireside Ventures Investment Fund –I, Stellaris Venture Partners India I, among others.
Other selling shareholders also include – up to 777,672 shares of Kunal Bahl, up to 477,300 shares of Rishabh Harsh Mariwala, up to 777,672 shares of Rohit Kumar Bansal and up to 554,700 shares of actor Shilpa Shetty Kundra.
Net proceeds from the IPO will be used for advertising spend to improve brand visibility and awareness, setting up new exclusive brand stores, investing in BBlunt to set up new salons, general corporate purposes and inorganic growth.
Mamaearth’s filing with the market regulator comes on the back of another filing in January by a colleague in the buzzing D2C space – Warburg Pincus-backed boat. The audio-focused electronics brand aims to raise around Rs 2,000 crore.
Kotak Mahindra Capital, JM Financial, Citi and JP Morgan are the investment banks working on the IPO and Cyril Amarchand Mangaldas, IndusLaw and Khaitan & Co are the legal advisors.
Popular for its wide range of “toxic-free” products, Honasa Consumer has gone the inorganic route with three buyouts over the past 12-15 months. First, it acquired women-focused content platform Momspresso, followed by BBlunt from Godrej Consumer Products Ltd and later strengthened its product portfolio by acquiring skin care brand Dr. Sheth’s to take over. It entered the color cosmetics category in October 2021 and offered products such as liquid lipsticks, bullet lipsticks, kajal and lip balms. A month later, the company launched a new hydration-based skincare brand Aqualogica.
Other players in the beauty and skincare segment include publicly traded rival Nykaa, Purplle, The Good Glam Group and Sugar Cosmetics. Nykaa had a great debut on the stock exchanges in 2021, but the company’s share price has fallen sharply since then.
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