With less than three weeks to go for the festival of Diwali, Honasa Consumer Private Limited, the parent company of Mamaearth is launching its IPO?next week, after more than a year of anticipation.?
Mamaearth's IPO is planned to be launched next week on October 31st, as per multiple industry sources in the know.?"There is a strong demand for the Honasa Consumer IPO which is scheduled for October 31 to November 2. The anchor portion will open on October 30. There is no plan for a pre-IPO round as of now," said one of the sources, as per a?Money Control report.
Mamaearth has set a price band of Rs 308-324 a share for its IPO.?The basis of allotment?will be on November 7 and initiation of refunds will be on November 8. The firm will list on exchanges on November 10.
The fast-growing D2C (direct-to-consumer) firm Mamaearth has a presence in the beauty, baby care and skin care segments. It was the first unicorn of 2022 and received regulatory approval for the listing from India's market regulator SEBI in August this year after filling draft papers in December 2022.
Mamaearth's parent company Honasa Consumer was co-founded in 2016 by the husband-wife duo of Varun and Ghazal Alagh.
Mamaearth is reportedly looking to raise around Rs 1,700 crore from a combination of a fresh issue and an offer-for-sale and was targeting an estimated valuation of around Rs 10,500 crore.
Barely a week after Mamaearth announced its IPO plans, the company was on the receiving end of a lot of criticism earlier this year. The reason? It's the IPO-bound company¡¯s ¡®crazy¡¯ valuation figures which are making news.
Mamaerth has become a target of criticism from netizens for its '1000 times' valuation rumours ahead of IPO.?And on top of that, netizens haven't shied away from trolling Mamaearth's co-founder Ghazal Alagh for?posting an 'emotional tweet'?denying rumours rather than stating solid figures to back up the clarification.
?Here's how netizens had reacted to her post.
The net proceeds of the IPO will be used for advertisement expenses to improve brand visibility and awareness, setting up new exclusive brand outlets, investment in BBlunt for setting up new salons, general corporate purposes and inorganic growth.
According to the DRHP (draft red herring prospectus), the shareholders who will dilute their holdings include the Alaghs, Sofina Ventures SA, Evolvence, Fireside Ventures, Stellaris Venture Partners, Snapdeal founder Kunal Bahl, Bollywood actress Shilpa Shetty Kundra, Rishabh Harsh Mariwala and Rohit Kumar Bansal. Sequoia Capital is not participating in the OFS, as per the report.??
Also Read:?Tata Sons To Go For?IPO?By Sept 2025, All You Need To Know
Kotak Mahindra Capital, JM Financial, Citi and JP Morgan are the investment banks working on the IPO and Cyril Amarchand Mangaldas, IndusLaw and Khaitan & Co are reportedly the legal advisors chosen for the soon-to-be-launched IPO of Mamaearth.
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