Mamaearth IPO DRHP: Honasa Consumer Private Ltd Initial Offering
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Mamaearth’s parent brand, Honasa Consumer Private Ltd has filed its IPO draft papers with SEBI, and the company would make its way to the Indian equity market really soon. Now for us Indians, it is the Mamaearth IPO and the market seems to be excited about it too. So, this Mamaearth IPO is going to be a combination of a fresh issue of shares and an Offer-For-Sale (OFS) by these previous investors- Varun Alagh, Ghazal Alagh, Shilpa Shetty, Sofina Ventures SA, Evolvence, Rishabh Harsh Mariawala, Rohit Kumar Bhansal, Kunal Bahl, Fireside Ventures, and Stellaris Venture Partners. Need all details of the Mamaearth IPO? You are at the right place.
The Honasa Consumer Private Ltd was founded in 2016 by Varun Alagh and Ghazal Alagh, who also happen to be a couple. Their company now owns some big brands such as Mamaearth, The Derma Co, and BBlunt too. So in 2023, the company plans on expanding its business further by offering its shares in the stock market for the first time. Out of the total issue, the fresh issue of shares would be worth ₹400 crores and the total number of shares offered for sale would be around 46,819,635.
With the amount that the company would raise from the stock market, it plans on expanding its business further inorganically. Here’s what the company has mentioned about its plans in its IPO document:
“We intend to utilise Rs 186 crore from the net proceeds towards marketing initiatives during financial years 2024, 2025 and 2026, including through offline and online media service agreements with entities that we engage in the ordinary course as well as any new vendors or agencies, as may be deemed appropriate”
Moreover, Mamaearth’s parent company would spend ₹32 crores for the expansion of Exclusive Brand Outlets (EBOs) in India. Thus, you can say that the company has taken a positive step towards marketing itself in the offline market too as most of its customers know about Mamaearth and the Derma company through online sources only.
Last but not least, the investors in the Indian stock market would like to play safe with this IPO after seeing what happened to Paytm and other Indian companies upon their arrival with their IPOs. Moreover, since this IPO is going to be an Offer For Sale too and the fact that most of its initial investors are selling their shares might not be a good news, right?
Do let us know what you think about the upcoming Mamaearth IPO and whether you would be investing it or not. If yes, do check out our deals and coupons on stock broker apps like Zerodha, 5Paisa, and Paytm Money.
Mamaearth is on the decline in its business. Their OMG sales are not even attractive anymore since they have started restricting the Buy 1 Get 1 Free sale only on very few selective products. The price of their products has also skyrocketed and is no longer worth value for money. Once an avid Mamaearth fan, now I haven't shopped from them for the past 1 year.
India is a price-sensitive market and any brand with not-so-affordable prices would have a hard time here.
One of the risk factors (according to me):
Products and the brand is currently revolving around MadeSafe Certification (third-party), continuation of which is essential for customer trust.
Let's hope that the brand has an alternate plan too
shilpa aunty gonna be happy soon..her 6cr gonna turn to 80crs/250crs 😬
paytm 2.0
Lot of OFS as usual I guess... and nothing to be understood unless we see some financials in detail (last year is always cooked up before IPO)...
Brands even use unethical tactics to make their balance sheet look better in front of investors. So it's better to wait for the complete financial data of the company for now.
Another IPO to loot retailers money
Mamaearth’s parent brand, Honasa Consumer Private Ltd has filed its IPO draft papers with SEBI, and the company would make its way to the Indian equity market really soon. Now for us Indians, it is the Mamaearth IPO and the market seems to be excited about it too. So, this Mamaearth IPO is going to be a combination of a fresh issue of shares and an Offer-For-Sale (OFS) by these previous investors- Varun Alagh, Ghazal Alagh, Shilpa Shetty, Sofina Ventures SA, Evolvence, Rishabh Harsh Mariawala, Rohit Kumar Bhansal, Kunal Bahl, Fireside Ventures, and Stellaris Venture Partners. Need all details of the Mamaearth IPO? You are at the right place.
The Honasa Consumer Private Ltd was founded in 2016 by Varun Alagh and Ghazal Alagh, who also happen to be a couple. Their company now owns some big brands such as Mamaearth, The Derma Co, and BBlunt too. So in 2023, the company plans on expanding its business further by offering its shares in the stock market for the first time. Out of the total issue, the fresh issue of shares would be worth ₹400 crores and the total number of shares offered for sale would be around 46,819,635.
With the amount that the company would raise from the stock market, it plans on expanding its business further inorganically. Here’s what the company has mentioned about its plans in its IPO document:
“We intend to utilise Rs 186 crore from the net proceeds towards marketing initiatives during financial years 2024, 2025 and 2026, including through offline and online media service agreements with entities that we engage in the ordinary course as well as any new vendors or agencies, as may be deemed appropriate”
Moreover, Mamaearth’s parent company would spend ₹32 crores for the expansion of Exclusive Brand Outlets (EBOs) in India. Thus, you can say that the company has taken a positive step towards marketing itself in the offline market too as most of its customers know about Mamaearth and the Derma company through online sources only.
Last but not least, the investors in the Indian stock market would like to play safe with this IPO after seeing what happened to Paytm and other Indian companies upon their arrival with their IPOs. Moreover, since this IPO is going to be an Offer For Sale too and the fact that most of its initial investors are selling their shares might not be a good news, right?
Do let us know what you think about the upcoming Mamaearth IPO and whether you would be investing it or not. If yes, do check out our deals and coupons on stock broker apps like Zerodha, 5Paisa, and Paytm Money.