Honasa Consumer Ltd., which owns direct-to-consumer skincare and wellness brands like Mamaearth, BBlunt, and The Derma Co., has filed documents with the SEBI for an initial public offering.
The company, founded in 2016 by husband-and-wife duo Ghazal and Varun Alagh, is looking to raise Rs 400 crore through the sale of new shares in the offer. Existing shareholders will also sell nearly 4.7 crore shares during the IPO.
According to the red herring draft prospectus that was filed with the Securities and Exchange Board of India, the company may also consider a Rs 80 crore pre-IPO share sale.
Selling shareholders include the founder duo, PE funds Evolvence India, Fireside Ventures, Sofina, Stellaris, Snapdeal's Kunal Bahl and Rohit Kumar Bansal, and Rishabh Harsh Mariwala, the son of Marico founder Harsh Mariwala and the head of Sharrp Ventures, which manages the family office of the Mariwalas. Actor Shilpa Shetty Kundra will also pare some of her holding in the IPO.
Honasa has said it will use the proceeds from the offer towards advertising, capex for setting up new exclusive brand outlets, investment in BBlunt for setting up new salons and unidentified inorganic acquisitions.
In the run-up to the filing of the DRHP, Honasa had added several independent members to its board, taking the count to 50%.
Aside from the Alaghs, the board now includes Sequoia Capital nominee Ishaan Mittal, BoAt Chief Executive Officer Vivek Gambhir, FMCG veterans Namita Gupta and Subramaniam Somasundaram.
Honasa Consumer, which also owns FMCG brands such as Aqualogica, Ayuga, and Dr Sheth's, has turned profitable in FY22, according to financial data accessed by Tofler. This is in contrast to other internet-first companies such as Zomato Ltd. and One97 Communications Ltd. that went public last year, whose stocks have been beaten down as concerns over the path to profitability have been raised.
The company reported a net profit of Rs 19.8 crore and revenue from operations of Rs 931.7 crore in fiscal 2022.
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