The offer also includes a reservation of up to Rs 10 crore for subscriptions by eligible employees
New Delhi: Honasa Consumer Ltd, which owns new-age FMCG brands like Mamaearth and The Derma Co, has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO).
The IPO comprises a fresh issue of equity shares worth Rs 400 crore and an offer-for-sale (OFS) component of 4,68,19,635 equity shares by promoters, investors and other selling shareholders, according to the draft red herring prospectus (DRHP).
Those offering shares in the OFS include promoters — Varun Alagh and Ghazal Alagh — and investors like Fireside Ventures Fund, Sofina, Stellaris, Kunal Bansal and Rohit Bansal, Rishabh Harsh Mariwala of FMCG firm Marico and Bollywood actor Shilpa Shetty Kundra.
The offer also includes a reservation of up to Rs 10 crore for subscriptions by eligible employees.
Going by the draft papers, the company may explore a pre-IPO placement aggregating to Rs 80 crore. If such a placement is undertaken, the size of the fresh issue will be reduced.
The net proceeds from the IPO would be utilised towards advertising expenses to improve awareness and brand visibility, setting up new exclusive brand outlets, investment in its subsidiary BBlunt for setting up new salons, general corporate purposes and inorganic acquisition.
The Gurugram-based beauty and personal care company was founded in 2016 by the husband-wife duo Varun and Ghazal Alagh. It began with the launch of Mamaearth and over the years added five more brands to its portfolio, including The Derma Co, Aqualogica, Ayuga, BBlunt and Dr Sheth’s, and built a ‘House of Brands’ architecture.
Earlier this year in January 2022, the company entered the unicorn club.
Kotak Mahindra Capital Company, Citigroup Global Markets India, JM Financial and JP Morgan India Pvt Ltd are the book-running lead managers to the issue.
The equity shares of the company will be listed on the BSE and NSE.