Fireside sells Honasa Consumer’s shares worth Rs 230 crore; stock surges ~4%

6 Dec 2023 , 12:55 PM

Fireside Ventures sold a portion of its holdings in Honasa Consumer, the parent company of Mamaearth. Fireside Ventures has offloaded shares aggregating to 1.9% in the firm at Rs 378 each. The VC fund received approximately Rs 230 crore from the sale. Fireside owned a 7.57% stake in the company at the end of September.

Following this development, the company’s counter jumped nearly 4% to an intraday high of Rs 381.95.

Meanwhile, according to exchange records, Norges Bank has acquired 0.77% of Honasa Consumer on behalf of The Government Pension Fund Global.

Mamaearth, which recently went public, made a flat start on the stock exchanges. After listing, the shares plummeted another 21% as investors shied away from the high values.

Honasa’s quarterly revenue increased 21% year-on-year to Rs 496 crore, driven by volume growth, while the EBITDA margin increased 170 basis points year on year to 8.1%, the best ever.

The company’s management is confident in producing 30%+ sales growth in the future, as it did in H1. It also anticipates EBITDA margins to continue rising year on year in the future years, driven by operating leverage and greater ad-spend optimization.

At around 12.51 PM, Honasa Consumer was trading 3.47% higher at Rs 376, against the previous close of Rs 363.40 on NSE.

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