Mamaearth's IPO, Bollywood Star and Top Investors Set for Windfall Gains
Snapdeal's Founders Eye 101x Gains in Mamaearth IPO
27 October 2023
Honasa Consumer's IPO for Mamaearth is set to debut on October 31, aiming to raise Rs 1,701 crore.
Notable investors like Shilpa Shetty Kundra, Snapdeal's founders, and Marico's promoter are part of the IPO.
Existing shareholders plan to offer 4,12,48,162 equity shares, potentially realizing gains of up to 101 times their initial investments.
The much-anticipated initial public offering (IPO) of Honasa Consumer, the parent company of the popular Mamaearth brand, is set to debut on Dalal Street on October 31. With a price range of Rs 308-324, the IPO aims to raise an impressive Rs 1,701 crore, making it one of the most significant offerings in recent times. What's more intriguing is the involvement of high-profile investors, including Bollywood actress Shilpa Shetty Kundra, Snapdeal's co-founders Rohit Kumar Bansal and Kunal Bahl, Marico promoter Rishab Harsh Mariwala, and the entrepreneurial husband-wife duo, Varun and Ghazal Alagh.
The IPO is not just about raising capital for Honasa Consumer but also includes a substantial stake sale by existing shareholders through the offer for sale (OFS). In total, 4,12,48,162 equity shares will be offered in the OFS, potentially making it worth Rs 1,336.44 crore at the upper end of the price range. What's truly remarkable is the potential for investors to earn substantial returns on their initial investments in Mamaearth, with projections reaching up to 101 times the initial investment. Alongside the OFS, Honasa Consumer will also raise Rs 365 crore through a fresh issue, adding to the financial strength of the company.
Snapdeal's co-founders, Kunal Bahl and Rohit Kumar Bansal, are among the investors who stand to gain the most. Acquiring their shares in Honasa at an average cost of just Rs 3.21 per share, they are poised to make significant profits if they decide to offer their shares at the upper end of the price band. Each of them could potentially realize a profit of Rs 36.54 crore, reflecting a stunning 101 times return on their initial investments.
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Promoter of Marico, Rishab Harsh Mariwala, holds an average acquisition cost of Rs 6.05 per share. With 57,00,188 equity shares being offered through the OFS, he is set to realize substantial gains of approximately 54 times his initial investment, resulting in an expected profit of around Rs 181.23 crore.
Bollywood luminary Shilpa Shetty Kundra, who is offering 13,93,200 equity shares in the OFS, secured her shares at a price of Rs 41.86 each. Her expected gains signify an eightfold increase over her initial investment, translating into an approximate profit of Rs 39.30 crore.
Promoters Varun Alagh and Ghazal Alagh, known for their presence on Shark Tank, acquired their shares at a negligible weighted average cost, given that they were the founders of the company. Varun intends to offload up to 31,86,300 shares, while Ghazal is looking to sell up to one lakh shares from their holdings, further adding to the buzz surrounding this highly anticipated IPO.