Mamaearth puts IPO plan on hold: Reports

27 Mar 2023 , 02:27 PM

Indian skincare firm, Mamaearth’s parent company Honasa Consumer Ltd has put the plans of initial public offer (IPO) on hold. The company filed its documents for an IPO in December, planning to raise about $200 million to $300 million through fresh issue of equity shares and an offer for sale by its promoters and existing shareholders.

The valuation of the company was estimated to be up to $3 billion.

As per various news reports, the company is in “wait and watch” mode due to unfavourable market conditions, turbulence in stock markets globally amid worries about the financial health of banks. It may reevaluate market conditions and start its marketing process by October if the sentiment improves, as said by the sources.

Honasa Consumer Ltd is backed by Sequoia Capital and Belgium’s Sofina (SOF.BR). The company had planned to start IPO marketing and begin initial talks with investors by the end of January, but that has not happened yet. In preliminary informal checks with investors, there was a difference in the valuation that the company was seeking and what investors were willing to give, one of the sources said.

Last month, Indian apparel retailer Fabindia, backed by billionaire Azim Premji’s fund, and jewellery retailer Joyallukkas scrapped their IPOs due to poor market conditions.