The company plans to issue fresh shares worth Rs 365 crore along with an offer for sale (OFS) of 41.25 million shares. This would be smaller than the previously planned fresh issue of Rs 400 crore and an OFS component of 46.82 million shares.
The Gurugram-based company will make a pre-IPO placement on October 30. The public issue will close on November 2.
In addition to founders Varun Alagh and Ghazal Alagh, who will offload a portion of their stakes in the company, other investors including Fireside Ventures, Sofina, Stellaris Venture Partners, Snapdeal founders Kunal Bahl and Rohit Bansal, FMCG company Marico’s Rishabh Mariwala, and actor Shilpa Shetty Kundra will also participate in the OFS.
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OFS details
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Among the OFS participants, investor Evolvence Capital has dropped out of its plan to sell shares in the Honasa Consumer IPO. As per the draft prospectus filed in December last year, the investor planned to sell 1.08 million shares.Further, compared to the original plan, Sofina will sell 9.57 million shares against 19.17 million shares earlier, while Stellaris Ventures plans to sell 10.94 million shares compared with 12.75 million shares.
Bahl and Bansal, who were earlier planning to sell 777,672 shares each, are now selling 1.19 million shares each.
Similarly, Mariwala will offer to sell 5.7 million shares, up from 477,300 shares previously, while Shetty Kundra will offer 1.39 million shares against 554,700 shares planned earlier.
The company has also earmarked shares worth Rs 1 crore for its employees.
Honasa Consumer’s investor Peak XV Partners, formerly Sequoia Capital India & Southeast Asia, won’t participate in the IPO. The investor led a $52 million round in Honasa in January 2022, ascribing it a valuation of $1.15 billion.
Financials
For the quarter ended June 30, Honasa Consumer reported revenue from operations of Rs 464.49 crore, a 49% increase from the year-ago period. For the three-month period, the company, which operates brands such as The Derma Co and BBlunt, in addition to Mamaearth, turned to a net profit of Rs 9.24 crore from a year-earlier loss of Rs 2.51 crore.
For FY23, the omnichannel retail company reported a net loss of Rs 150.97 crore, compared with a net profit of Rs 14.44 crore in FY22. Operating revenue, however, grew 58% year-on-year to Rs 1,492.75 crore.
On October 17, ET reported that Honasa Consumer is planning to double down on its plan to expand its flagship brand Mamaearth into international markets.
