Popular brand Mamaearth’s owner Honasa Consumer Limited has filed its Draft Red Herring Prospectus (DRHP) on Thursday with market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering.
The Company plans to raise funds through offer of equity shares (face value Rs10 each) through the public issue. Mamaearth IPO comprises of fresh issue of equity shares aggregating up to ₹400 crore and offer for sale (OFS) of up to 46,819,635 equity share by selling shareholders.
The OFS comprises of – up to 3,186,300 equity shares by promoter Varun Alagh and up to 100,000 equity shares by promoter Ghazal Alagh along with Evolvence India Fund III Ltd, Fireside Ventures Investment Fund –I, Stellaris Venture Partners India I, among others.
The other selling shareholders also include – up to 777,672 equity shares by Kunal Bahl, up to 477,300 equity shares by Rishabh Harsh Mariwala, up to 777,672 equity shares by Rohit Kumar Bansal and up to 554,700 equity shares by actor Shilpa Shetty Kundra.
The company proposes to utilize net proceeds from fresh issue towards – (i) Advertisement expenses towards enhancing the awareness and visibility of its brands amounting to ₹186 core; (ii) Capital expenditure for setting up new EBOs amounting to ₹34.23 crore; and (iii) Investment in its Subsidiary, BBlunt for setting up new salons amounting to ₹27.52 crore.
The Equity Shares that will be offered through the Red Herring Prospectus are proposed to be listed on the BSE Limited (BSE) and National Stock Exchange of India Limited (NSE).
Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, JM Financial Limited and J.P. Morgan India Private Limited are the Book Running Lead Managers to the issue.
Started in 2016 by husband-wife duo Ghazal and Varun Alagh, Mamaearth is a Gurugram-based skincare and babycare unicorn. It got its unicorn status in January this year. For financial year ended March 2022, the company’s net profit stood at ₹14 crore whereas its revenue rose to ₹943 crore in FY22 as compared to ₹456 crore in the previous fiscal.
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