Honasa Consumer's shares worth ₹1,763 Crore change hands

12 Sep 2024 , 11:12 AM

Honasa Consumer’s shares fell as high as 5.2% on Thursday after the business sold 10.9% of its outstanding equity in a block sale.

Honasa Consumer sold 3.5 Crore shares, or 10.9% of its equity, for ₹500 a share, totalling ₹1,763.3 Crore in transaction value.

Selling stockholders now intend to sell up to 3.5 Crore shares of the company, or approximately 10.8% of the existing equity, rather than the 8.05% they planned to sell previously.

The block deal’s floor price stayed maintained at ₹480 per share.

According to sources, the block deals sellers included Peak XV Partners, Sequoia Capital, Redwood Trust, Fireside Ventures, Stellaris Ventures, and Sofina Ventures. Official buyer and seller statistics for the block deal are currently unclear.

These selling shareholders will have a 60-day lock-in period to sell any additional shares.

Kotak Securities and Jefferies India are the brokers.

The brokerages envision two primary levers driving Honasa Consumer’s 2.5x revenue growth and tripling of earnings before interest, tax, depreciation, and amortisation (Ebitda) margins over FY24-30.

The first step is to expand the portfolio of brands within the derma skin care stable, including ‘The Derma Co’ and ‘Aqualogica’, in order to emulate the successful scale up of the ‘Mamaearth’ brand.

At around 11.04 AM, Honasa Consumer was trading 4.98% lower at ₹496, against the previous close of ₹522 on NSE. The counter touched an intraday high and low of ₹508.95, and ₹490, respectively.

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