Honasa Consumer, Parent of Mamaearth, Raises Rs 765 Crore from Anchor Investors

31 Oct 2023 , 09:21 AM

Gurugram-based beauty and personal care company Honasa Consumer successfully secured Rs 765.2 crore from 49 anchor investors on October 30, the day preceding the opening of its issue.

As the parent company of Mamaearth, Honasa Consumer garnered substantial interest from esteemed investors, including renowned entities such as Smallcap World Fund Inc, Fidelity Funds, Abu Dhabi Investment Authority, Government Pension Fund Global, Caisee De Depot ET Placement, FSSA India Suncontinent Fund, Carmignac Portfolio, Goldman Sachs, Fundpartner Solutions, and Hornbill Orchid India Fund, among others, participating in the company through the anchor book.

The company confirmed the allocation of 2,36,17,228 equity shares to anchor investors at Rs 324 per share in its filing to exchanges.

Mutual fund houses like ICICI Prudential Mutual Fund, Aditya Birla Sun Life Trustee, Nippon Life India, Axis Mutual Fund, Whiteoak Capital MF, Invesco, Kotak Funds, and Franklin Templeton Investment Funds also engaged in the book.

Honasa Consumer noted the involvement of seven domestic mutual funds through a total of 19 schemes in the anchor book. Additionally, major insurance companies, including SBI Life Insurance Company, Aditya Birla Sun Life Insurance Company, ICICI Prudential Life Insurance Company, Max Life Insurance Company, Bajaj Allianz Life Insurance Company, and Bharti Axa Life Insurance Company, invested in the company promoted by Varun Alagh and his wife Ghazal Alagh.

The D2C brand Mamaearth’s parent company, Honasa Consumer, is set to commence its Rs 1,701-crore initial public offering on October 31, with a price band ranging from Rs 308 to Rs 324 per share.

The IPO comprises a fresh issuance of shares valued at Rs 365 crore and an offer-for-sale (OFS) of 4.13 crore equity shares by promoters and investors. Notably, the company downsized its IPO by 10 percent and adjusted its valuation expectations accordingly.

Honasa Consumer manages several consumer brands, including Mamaearth, The Derma Co., Aqualogica, Dr Sheth’s, Ayuga, and BBLUNT. The net fresh issue proceeds of Rs 182 crore are earmarked for advertising expenses to enhance brand awareness and visibility, while Rs 20.6 crore will be invested in establishing new exclusive brand outlets (EBOs).

Additionally, the company plans to allocate Rs 26 crore to its subsidiary, BBlunt, for setting up new salons, while the remaining portion of the issue proceeds will be utilized for general corporate purposes and potential unidentified acquisitions.

Promoters, including Varun Alagh and Ghazal Alagh, hold a 37.41 percent stake in Honasa, with the remainder owned by the public, including Peak XV Partners, Fireside Ventures Fund, Stellaris, and Sofina.