Varun and Ghazal Alagh-led Honasa Consumer Limited, the parent of the personal care brand Mamaearth, has filed the draft red herring prospectus (DHRP) for its initial public offering (IPO).
The company will issue shares worth Rs 400 crores through the IPO. Additionally, the offer will have an offer-for-sale (OFS) component of 46.82 million shares.
Founders Varun and Ghazal Alagh and investors like Sofiana, Fireside Ventures, Evolvence India and Stellaris will dilute their shareholding for the OFS. Angel investors such as Kunal Bahl, Risabh Mariwala, Rohit Bansal and Shilpa Shetty Kundra will also reduce their holdings in the company.
The company will utilise the post-IPO capital to improve brand visibility and set up outlets. It will also increase spending on advertisements to surge brand awareness.
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In January 2022, the New-Delhi-based start-up raised $52 million from Sequoia Capital and achieved a valuation of $1.2 billion. Additionally, it also entered the club of Indian unicorns.
“Our flagship brand, Mamaearth has established itself as a leader in D2C personal care with a strong purpose of Goodness Inside. Looking at the scale of Mamaearth and the success of The Derma Co., we are confident that we have the expertise to build brands with a millennial connect,” Varun Alagh, the CEO and the co-founder, said while addressing the fundraising.
According to an Economic Times report, the company registered Rs 722.73 crore during April-September in 2022 in revenues. It also earned a profit of Rs 19.8 crore in the financial year (FY) of 2022.
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