From Shilpa Shetty To Kunal Bahl: How Much Mamaearth's Investors Can Earn From The Upcoming IPO

More than a year after it announced its IPO plan, Mamaearth's parent company, Honasa Consumer Ltd., is set to finally begin the process of getting listed on the Indian stock market.

When Is Mamaearth's IPO?

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Mamaearth's IPO is planned to be launched on October 31st. The company's stock will get listed on both the NSE and BSE on November 10, while the finalisation of the basis of allotment is likely to be done by November 7.

For the unversed, Mamaearth's parent company, Honasa Consumer, was co-founded in 2016 by the husband-wife duo of Varun and Ghazal Alagh.

How Much Is The Expected Share Price?

Mamaearth has set a price range of Rs 308¨C324 per share for its IPO. Mamaearth is reportedly looking to raise around Rs 1,700 crore from a combination of a fresh issue and an offer-for-sale and is targeting an estimated valuation of around Rs 10,500 crore.

The IPO includes the fresh issuance of shares worth up to Rs 365 crore and an offer for sale (OFS) of about 4.12 crore shares.

Who Has Invested In Mamaearth?

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Bollywood actor Shilpa Shetty Kundra, who is among the selling shareholders in the IPO, as per the Draft Red Herring Propspectus (DRHP), has offered 5,54,700 company shares to offload in this upcoming IPO, which she had bought at ?41.86 per equity share. So, her net investment in these shares offered for sale is ?2,32,19,742, or around ?2.32 crore. As per the Mint report, Shilpa Shetty Kundra is all set to earn around ?15.65 crore from the IPO.

Honasa promoter Varun Alagh is likely to sell 3,186,300 shares, while his wife Ghazal Alagh may sell up to 100,000 shares in an IPO.

Snapdeal co-founders Kunal Bahl and Rohit Bansal, who invested in Honasa back in 2018, will offload 1,193,250 equity shares each. They acquired shares at Rs 3.21 apiece. For them, the return on investment is over 100x.

Meanwhile, Marico's Rishabh Harsh Mariwala's average cost of acquisition was Rs 6.05 per share, so he is sitting on a 53x return. Apart from the aforementioned names, Fireside Ventures Fund, Sofina, and Stellaris are also among the shareholders in the OFS.

Varun Alagh and Ghazal Alagh are co-founders, so their cost of acquisition is negligible, as per the prospectus. Fireside Ventures Fund's cost of acquisition was Rs 7.33, indicating 44.2x gains at the upper end of the price band. Stellaris' cost of acquisition was also the same. Meanwhile, the Belgium-based Sofina Fund's average cost of acquisition was Rs 112.07, indicating a 3x return on investment.

Also, Honasa employees will get a discount of Rs 30 per share as well as a reservation of equity shares worth up to Rs 10 crore, as per the ET report.

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Also Read: Tata Sons To Go For IPO By Sept 2025, All You Need To Know

What Will Mamaearth Do With The IPO Money?

The net proceeds of the IPO will be used for advertisement expenses to improve brand visibility and awareness, setting up new exclusive brand outlets, investing in BBlunt to set up new salons, general corporate purposes, and inorganic growth.

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In the June quarter, the company¡¯s revenue from operations stood at Rs 464.49 crore, up 49% from a year ago. Net profit stood at Rs 9.24 crore, according to filings, as the ET report mentioned.

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