MamaEarth To Launch IPO, Aims To Raise ₹1,701 Crore
Honasa Consumer, the parent company of Mamaearth, has announced details about its upcoming Initial Public Offering (IPO). The company has set the share price between Rs 308 and Rs 324.
Each share will have a face value of Rs 10. People can start buying these shares on October 31 and have until November 2 to do so.
The company plans to raise fresh funds of Rs 365 crore and will also sell up to 41.25 million existing shares. If the shares are sold at the highest price of Rs 324, the company expects to raise about Rs 1701.44 crore in total. This would value the company at around Rs 10,424.53 crore.
Many existing investors like Fireside Ventures, Stellaris Venture Partners, and others will also sell some of their shares in this IPO.
Varun Alagh, who is a key person in Honasa, will sell more than 3 million of his own shares. MamaEarth co-founder Ghazal Alagh will sell up to 100,000 shares. Both are real-life couples who started this company in 2016.
The money collected from this IPO will be used for various purposes. A big part will go into advertising to make the brand more popular.
The company also plans to open new exclusive stores and invest in BBlunt for new salons. Some amount will be kept for general business needs and for buying other businesses or assets.
Different types of investors will get different portions of this IPO. Large institutional buyers will get 75%, smaller non-institutional investors will get 15%, and regular people, or retail investors, will get 10%. There’s also a Rs 30 discount per share for company employees who buy these shares.
Ghazal and Varun Alagh started their company Honasa Consumer Private Limited because they couldn’t find toxin-free baby products in India for their son.
So they decided to make these products themselves and launched them under the brand name MamaEarth in 2016.
Today, MamaEarth is a famous brand for baby care, skincare, and cosmetics. Honasa also owns other brands like The Derma Co. and BeBlunt.
MamaEarth has its own research facility to develop and test products. An American agency called Madesafe sets the standards for their product safety.
The company gained the status of a unicorn this year, which means it’s now valued at more than a billion dollars. They achieved this milestone by raising Rs 5.2 crore from Sequoia Capital. Right now, the company is making almost Rs 1000 crore in revenue.