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Beauty brand Mamaearth’s parent company Honasa Consumer has filed its Draft Red Herring Prospectus (DRHP) with Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).
As per the regulatory filing, there will be fresh issuance of shares aggregating up to ₹400 crore by the company and offer-for-sale (OFS) component of up to 46,819,635 shares by selling shareholders.
The OFS comprises up to 3,186,300 equity share of founder Varun Alagh and up to 1,00,000 shares of founder Ghazal Alagh. The selling shareholders include Evolvence India, Fireside Ventures Fund, Sofina Ventures, Stellaris, Snapdeal founders Kunal Bahl and Rohit Kumar Bansal, Marico’s Rishabh Harsh Mariwala and actor Shilpa Shetty Kundra.
Honasa Consumer is a digital-first beauty and personal care company with a portfolio of six brands. The company said its flagship brand Mamaearth has emerged as the fastest growing beauty and personal care brand in India with annual revenue of ₹1,000 crore.
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Adani said NDTV will be a credible, independent, global network with clear boundaries between management and editorial“The proceeds of the fresh issue shall be available to our company and the proceeds of the OFS (net of their proportion of Offer-related expenses and the relevant taxes thereon) shall be available to the selling shareholders,” it added in its regulatory filing.
The company said that the proceeds raised will be used for advertising expenses to enhance the brand and visibility of the company, capex to set up new exclusive brand outlets and potential inorganic acquisitions. It added that the proceeds will also be used for setting up new salons through its subsidiary BBlunt.
The size of the beauty and personal care sector in India was pegged at about $17 billion in 2021 and expected to grow to about $30 billion in 2026 growing at a CAGR of about 12 per cent.
The online BPC market, which is currently pegged at $2.5 billion is expected to grow at 27 per cent annually to be around $ 8.4 billion by 2026, translating to an online penetration of 28 per cent.
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