The shares of Honasa Consumer, the parent entity of Mamaearth, slumped by 5 per cent to a day's low of Rs 495 on the NSE after the company saw a 10.9 per cent equity stake with Rs 1,763 crore sold via a block deal on Thursday.
Peak XV Partners Investments VI, Redwood Trust, Sequoia Capital Global Growth Fund III-U.S./India Annex Fund, Fireside Ventures Investment Fund I, Stellaris Venture Partners India and Sofina Ventures SA are reportedly the likely sellers in the transaction.
The seller reportedly wanted to sell an 8 per cent equity stake in the company, equivalent to 263 crore shares valued at Rs 1,261 crore. It was later increased to a sale of 10.8 per cent.
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Reportedly, Peak XV partners held 18.9 per cent equity stake in Honasa, as of the quarter that ended in June.
Kotak and Jefferies were the bankers for Honasa in connection with the details as per reports.
The deal is reportedly likely to have occurred at Rs 480 per share, which represents an 8 per cent discount from Wednesday's closing price.
The stocks reportedly have hit a record high of Rs 547 a piece on NSE on Tuesday.
Honasa Consumer share prices have risen by nearly 17 per cent, and the stock has gained 30.5 per cent over the past six months.
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Honasa Consumer was founded in 2016 by Varun and Ghazal Alagh, who are both husband and wife. Their portfolio reportedly consists of beauty and personal care brands which include the likes of Mamaearth, The Derma Co., Aqualogica, Ayuga, BBlunt and Dr. Sheth's.
It reported a 63 per cent year-on-year increase in its consolidated net profit for the quarter ended June 30, 2024, reaching Rs 40 crore, up from Rs 24 crore in the same quarter of the previous financial year.
Its operating revenue for the April-June quarter was Rs 554 crore, which is a 19 per cent increase from Rs 464 crore in the same period last year.
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