Market volatility saw most start-ups postpone or shelve IPO plans, but Mamaearth's parent company ended the year submitting a Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering. Buoyed by confidence from its profitability, Honasa Consumer Ltd. ended 2022 filing for an IPO comprising a new issue of shares worth 4 billion rupees ($48.30 million) and an offer to sell 46.8 million shares.
Honasa Consumer Pvt. Ltd. (HCPL) was founded in 2016 by husband-and-wife duo Varun and Ghazal Alagh, and the company's portfolio of brands consists of Mamaearth, The Derma Co, BBlunt, and Dr. Sheth's. The company was last valued at $1.2 billion in January 2022 when it raised $52 million from investors.
Investors looking to sell their stake in Honasa via the offer for sale include Sofina, Stellaris Venture Partners, Fireside Ventures, and Bollywood actor Shilpa Shetty. Kotak Mahindra Capital, Citigroup Global Markets India, JM Financial Ltd, and J.P. Morgan India Private Ltd are the book-running lead managers for the issue.
In the offering documents Honasa Consumer said it plans to use the IPO proceeds towards advertising expenses, capital expenditure in setting up new exclusive brand outlets, investment in its subsidiary BBlunt for opening up new salons, and general corporate purposes and unidentified inorganic acquisitions.
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