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Honasa Consumer Limited announced the launch of its Initial Public Offering (IPO) starting from October 31, 2023 with a price band of ₹308 to ₹324 per equity share. The offering comprises a fresh issue of equity shares amounting to ₹365 crore, alongside an Offer for Sale (OFS) of up to 41,248,162 equity shares by various stakeholders, including promoters, founders, and investors.
The company’s Q1-FY 2024 financial results showed a net profit of ₹24.71 crore compared to a net loss of ₹11.5 crore in the corresponding quarter previous year. The offer closes on November 2, 2023. Kotak Mahindra Bank, Citi Bank, JM Financial and J.P. Morgan are the book running lead managers to the offer.
Varun Alagh, Chairman and CEO of Honasa, highlighted several key factors contributing to the success of their flagship brand, Mamaearth, and the expansion into new brands. These include their strengths in product innovation, establishment of a digital omni-channel distribution network, and the ability to drive growth and profitability in a capital-efficient manner. The company is currently focused on expanding distribution and brand awareness, as well as strengthening business efficiency drivers.
Ramanpreet Sohi, the CFO of Honasa Consumer Ltd, emphasized the company’s efficient scaling of brands over time and its financial management, leading to recovery from a negative capital situation in FY22. The company’s foray into offline channels has impacted its financial risk management strategy positively. He said, “With a substantial cash reserve of around 460 crore, the company aims to prioritize growth and seize new opportunities while ensuring sound financial management.”
The company’s portfolio, including brands like Mamaearth, The Derma Co., Aqualogica, Ayuga, BBlunt, and Dr. Sheth’s, has a commitment to social and environmental causes, as reflected in initiatives such as the ‘Plant Goodness’ program and the ‘Fresh Water for All’ campaign.
Gazal Alagh, the Co-founder of Honasa, emphasized their consumer-centric approach, she said, “Despite a competitive landscape, our focus has always been on understanding consumer needs and delivering the right products with the right propositions. This approach has enabled the company’s growth trajectory, with a commitment to further building beloved brands for consumers, especially within the beauty and personal care segment.”
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