Mamaearth parent to launch its IPO on October 31; to raise Rs 1,700Cr: Report

Ghazal Alagh-led Mamaearth parent company Honasa Consumer, which also owns brands like The Derma Co and BBlunt, is gearing up to launch its much-anticipated IPO on October 31. 

The development comes almost three months after it received approval from SEBI for its initial public offering (IPO)

Mamaearth's upcoming IPO

According to a Moneycontrol report, Mamaearth parent could launch its IPO between October 31 and November 2. The company aims to raise approximately Rs 1,700 crore, targeting a valuation in the ballpark of Rs 10,500 crore.

The report further said that the IPO will comprise a fresh issue of shares worth Rs 400 crore and an Offer for Sale (OFS) of up to 46.80 million equity shares. Notably, Peak XV Partners, a major shareholder, will not participate in the OFS.

Which brands are owned by Honasa Consumer?

Honasa Consumer is a parent company of Mamaearth, Mamaearth, The Derma Co., Aqualogica, and Ayuga and has recently acquired stakes in BBLUNT and content platform- Momspresso.

Founded in 2016 by the entrepreneurial couple, Varun Alagh and Ghazal Alagh, Honasa Consumer has made significant strides in the beauty, babycare, and skincare sectors. 

In January 2022, Honasa Consumer raised $52 million in a funding round at a valuation of $1.2 billion. The round was led by Sequoia, with participation from Belgium-based Sofina Ventures, and Evolvence, a UAE-based India-focused fund.

Notably, The round also gave employees an opportunity to monetise their vested employee stock ownership plans (ESOPs).

How much equity do the founders own in Honasa Consumer?

The Alagh couple remains the primary stakeholder, holding a combined 43.54% stake in the company. Following them, Peak XV Partners holds 20.94%, with other significant shareholders being Fireside Ventures and Stellaris, owning 15.01% and 11.24% respectively.

Several other prominent names, including Bollywood actress Shilpa Shetty Kundra and Snapdeal's Kunal Bahl and Rohit Kumar Bansal, are also associated as shareholders.

How well Mamaearth is performing financially? 

MamaEarth's revenue doubled to Rs 943 crore in FY22, but its profit dropped by 50% to Rs 14.4 crore. In the first half of FY23, the company reported an operating income of Rs 722 crore, according to the DRHP filed with SEBI.