Mamaearth's Parent Company Files IPO Papers To Raise Rs 400 Crore Through Fresh Issue Of Shares

After beginning the year by?becoming 2022's first unicorn in January, Mamaearth is set to end the year with another milestone.

Honasa Consumer Ltd., the parent company of Indian personal care products startup Mamaearth, has filed for an initial public offering (IPO), according to draft papers submitted to the market regulator SEBI.

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Fresh Issue Of Shares Worth Rs 400 Crore

According to a Reuters report, the company's IPO?will consist of a fresh issue of shares worth Rs 4 billion or Rs 400 crore ($48.30 million) and an offer for sale of 46.8 million shares.

Mamaearth was co-founded as a direct-to-consumer brand by Varun Alagh and his wife Ghazal Alagh.

Investors including Sofina, Stellaris Venture Partners, Fireside Ventures, co-founders Varun and Ghazal Alagh, and?Bollywood?actor?Shilpa Shetty are among those expected to partially?sell their stake?in Honasa via the offer for sale.

Mamaearth parent Honasa said it would use about Rs 1.86 billion from the IPO for advertising expenses.?The startup reported a consolidated restated profit of Rs 157.2 million in the year ended March 31, 2022, its financial statement showed.

Kotak Mahindra Capital, Citigroup Global Markets India, JM Financial Ltd., and J.P. Morgan India Private Ltd. are reportedly the book-running lead managers for the issue.

Also Read:?Tata Group Backed Bigbasket Eyes?IPO?By 2025

First New Age D2C Brand To Go For IPO

If the IPO goes through, Mamaearth's parent company, Honasa Consumer, will likely be among the first new-age direct-to-consumer (D2C) companies to have an IPO in India, after audiotech brand Boat withdrew its public offering plans earlier this year citing choppy market conditions, as per an ET report.

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Growth In India's beauty and personal care industry?

India's beauty and personal care industry is expected to grow to $27.5 billion by 2025 from $17.8 billion in 2020, according to estimates by Indian financial services firm Avendus.

The number of online beauty product shoppers is also expected to grow, rising to 135 million from 25 million during that time period.?The company was last?valued at $1.2 billion in January 2022, when it turned unicorn after raising $52 million from investors, including U.S.-based Sequoia and Belgium's Sofina.

Also Read:?Simple Life Lessons Young Entrepreneurs Can Learn From Shark?Tank India

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