Onest, an FMCG firm files IPO papers with SEBI

31 Jul 2023 , 03:21 PM

Onest, an FMCG company, has submitted the draft red herring prospectus (DRHP) to SEBI for its upcoming initial public offering (IPO).

The IPO will consist of a fresh issuance of shares valued at Rs 77 crore and an offer for sale (OFS) of 32.5 lakh shares by the company’s promoter and investors.

Founder and promoter, Pawan Kumar Gupta, who currently owns an 84.46 percent stake in the company, intends to sell 26.64 lakh shares through the OFS route, while Glentrade DMCC, based in Dubai, plans to sell 4.68 lakh shares via the offer for sale.

The majority of the fresh issue proceeds, after deducting issue expenses, will be allocated to cater to incremental working capital requirements, along with other general corporate purposes.

Onest Limited’s IPO has allocated a minimum of 75% of the shares in the public issue for Qualified Institutional Buyers (QIBs), up to 15% for Non-Institutional Investors (NIIs), and up to 10% for Retail Investors.

The company primarily focuses on Fast Moving Consumer Goods (FMCG) and Non Fast Moving Consumer Goods segments, operating on an asset-light model and relying heavily on contract manufacturing for most of its FMCG products.

In the fiscal year 2023, the consolidated revenue from operations witnessed a significant increase of 70.94%, reaching Rs 184.31 crore compared to Rs 107.82 crore in the previous year. This growth was attributed to the addition of new SKUs to the product portfolio and expansion into new markets. Additionally, the net profit surged by 227.13%, rising from Rs 2.44 crore in fiscal year 2022 to Rs 8.00 crore in fiscal year 2023.

Onest Ltd’s shares are proposed to be listed on both BSE and NSE. The book-running lead managers (BRLM) for the IPO are Monarch Networth Capital Ltd and Unistone Capital Private Ltd, while Link Intime India Private Ltd will serve as the registrar.