Unicorn Mamaearth's Big Leap, SEBI Approves IPO for Honasa Consumer Ltd
Investors Rejoice as SEBI Clears the Way for Mamaearth's IPO
4 August 2023
Honasa Consumer Ltd receives SEBI approval for its IPO, marking a significant milestone.
Mamaearth's IPO includes a fresh issue of INR 400 crore and an OFS of 46.82 million equity shares.
Indegene Ltd and Vishnu Prakash R Punglia Ltd also get SEBI's nod for their IPOs.
Honasa Consumer Ltd, the parent company of beauty e-commerce unicorn Mamaearth, has achieved a major milestone as it receives approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offer (IPO). The SEBI's observation letter, issued on July 28, 2023, signifies a green light for the company to go public, marking a significant step in its growth trajectory.
The road to the IPO has been a journey of patience and strategic planning for Honasa Consumer. The company filed its draft red herring prospectus (DRHP) in December of the previous year and had been navigating the global stock market's volatility to time its IPO effectively. However, the brand's wait-and-watch approach was not due to hesitation, but rather to await formal approval from the market regulator.
The Mamaearth IPO will consist of a fresh issue of shares worth INR 400 crore, alongside an offer for sale (OFS) of 46.82 million equity shares. Notably, several of Honasa Consumer's early investors, including founders Ghazal and Varun Alagh, along with renowned names such as Snapdeal founder Kunal Bahl and Bollywood actress Shilpa Shetty Kundra, are expected to dilute their holdings in the IPO.
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SEBI's clearance comes as a welcome sign for Honasa Consumer Ltd, which also owns FMCG brands Mamaearth and The Derma Co. Additionally, healthcare tech firm Indegene Ltd and EPC firm Vishnu Prakash R Punglia Ltd have also received SEBI's nod for their respective IPOs. The trio of companies filed their preliminary IPO papers in late 2022 and early 2023, with SEBI's observation letters finally paving the way for their public issues.
As per the draft papers, Indegene's proposed IPO comprises a fresh issue of equity shares worth up to INR 950 crore and an OFS of up to 36.3 million equity shares by existing investors. The healthcare tech firm, focused on the global life sciences industry, is expected to mobilize around INR 3,200 crore through the initial share sale, aiming to use the funds for debt repayment, capital expenditure, and inorganic growth.
Similarly, Vishnu Prakash R Punglia Ltd's IPO comprises a fresh issue of 31.2 million equity shares, with no OFS component. The Jodhpur-based company plans to utilize the proceeds of approximately INR 300 crore for purchasing capital equipment, funding working capital requirements, and meeting general corporate purposes.
For Mamaearth, the SEBI's approval opens the gateway to go public within the next 12 months. It will be an opportunity for investors to participate in the growth story of this beauty e-commerce brand, which has gained immense popularity for its natural and sustainable product offerings.