NCLT Gives Green Light to Honasa Consumer Merger, Shares Soar

26 Aug 2024 , 02:09 PM

Shares of Honasa Consumer, the parent company of popular D2C brands such as Mamaearth, The Derma Co, and BBlunt, soared by over 14% to reach an all-time high of ₹534.90 on the NSE.

The spike in stock interest came after the company announced that the National Company Law Tribunal (NCLT) in Chandigarh approved a scheme of amalgamation between Just4Kids Services Private Limited, Fusion Cosmeceutics Private Limited, and Honasa Consumer.

The company shared this update in an official exchange filing, stating: “Intimation of receipt of the order of the Hon’ble National Company Law Tribunal, Chandigarh Bench in relation to the Scheme of Amalgamation between Just4Kids Services Private Limited, Fusion Cosmeceutics Private Limited, and Honasa Consumer Limited.”

Just4Kids Services, established in 2010, provides a platform offering information about playschools, schools, hobby and sports classes, events, summer camps, and workshops for children in Delhi, Gurgaon, Noida, Faridabad, and Ghaziabad. Fusion Cosmeceutics, on the other hand, specializes in the formulation and trading of skincare products. Honasa Consumer’s board had approved the amalgamation scheme on April 19.

Honasa Consumer’s shares were trading 14% higher in the morning. At 02.05 PM, the shares were trading at 9.91% higher at ₹515 per share on NSE. Over the past six months, the company’s stock has surged by 22%, outpacing the Nifty’s approximate 13% return during the same period. Since its debut on the NSE on November 7 last year at ₹330, Honasa Consumer’s stock has climbed by 63%.

In its latest financial results for the quarter ending in June, Honasa Consumer reported a net profit of ₹40.2 Crore, marking a 62.7% year-on-year increase. The company’s consolidated revenue from operations also saw a 19% YoY rise, reaching ₹554.1 Crore.