Honasa Consumer Ltd is the parent company of FMCG brands Mamaearth and The Derma Co. On Monday, the company announced that they are in conversations with the SEBI regarding their process for the intial public offering (IPO). SEBI will approve the papers once their dialogues are complete and the company will take the company public subject to the regulations. This clarification followed certain news reports of the company postponing their IPO due to weak market conditions.
Varun Alagh, the co-founder of Mamaearth, stated that their largest investor will not be selling any shares, and that the promoters will continue to own over 97 percent of their ownership in the company after the IPO, and that any pricing or valuations will be discovered in their marketing roadshows.
The Honasa Consumer IPO is targeted to raise funds up to Rs 400 crore with an offer for sale of up to 46,819,635 shares. The investors proposed to sell their shares include promoters Varun Alagh and Ghazal Alagh, along with Bollywood actor Shilpa Shetty Kundra, Rohit Kumar Bansal, Sofina Ventures and Kunal Bahl.
Considering the fiasco of Paytm following their IPO in 2021, SEBI has become more stringent in giving the approval of other IPOs. According to the data compiled by Primedatabase.Com, the average time taken by the markets regulator for approving IPOs in 2021 was 115 days.
All in all, Mamaearth awaits the approval of its preliminary IPO papers from the SEBI, which will hopefully be completely soon. This will help them raise funds to help the growth of their FMCG brands.
