Following reports of Mamaearth parent halting its IPO, the beauty and skincare company said it is still engaging with SEBI on its DRHP (Draft Red Herring Prospectus) and is awaiting the formal approval on the same.
“Post the approval, as is in line with the regulations, we will have 12 months to file RHP (Red Herring Prospectus) and take the company public, which we will do in consultation with our bankers,” the company said in a statement. It added that pricing and valuations will be discovered as part of the company’s marketing roadshows.
Further, none of the company’s large investors will be selling shares in the IPO and the company founders will continue to hold more than 97 per cent of the company ownership after the IPO. “We have no interest in optimising for short-term valuations, we are in this for the long term,” the company noted.
Mamaearth parent Honasa Consumer Ltd submitted its documents to SEBI for an IPO in December 2022, with plans to raise $200-300 million at a valuation of $3 billion. This was planned to be done through the issue of new equity and an offer of sale of some existing shares.