In a development announced today, India's largest digital-first beauty and personal care company, Honasa Consumer Limited, is preparing to launch its initial public offering (IPO) tomorrow, October 31. The IPO is priced between Rs 308-324 per share, with the objective of raising Rs 1,701 crore.
The capital raised will be divided among various uses. A total of Rs 365 crore will come from a fresh issue of shares, while an offer-for-sale of 4.13 crore equity shares will be made by promoters Varun Alagh, Ghazal Alagh, and significant public shareholders Sequoia Capital, PXV VI, and Fireside Ventures Fund.
The funds are earmarked for several purposes. Advertising will receive Rs 182 crore, new exclusive brand outlets will get Rs 20.6 crore, and investments in BBlunt for new salons will amount to Rs 26 crore. The remaining balance will be used for general corporate purposes and unidentified inorganic acquisitions. The minimum bid for the IPO has been fixed at 46 equity shares.
Honest Consumer Limited operates popular brands like Mamaearth and BBlunt. Its brand Mamaearth has gained recognition as the fastest-growing Beauty and Personal Care (BPC) brand in India. Since its inception in 2016, Mamaearth has achieved Rs 1,000 crore in annual revenue within just six years.
However, the company's reliance on third-party manufacturers and a limited product range could pose potential risks moving forward. The allotment of the IPO is expected to be finalized by November 7.
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