Honasa Consumer Ltd IPO

Last Updated on October 28, 2023 by BFSLTeam BFSLTeam

Honasa Consumer Ltd started its operation in 2016 from the ideas of its founders Ghazal Alagh and Varun Alagh. The idea to create a toxin-free and safe beauty and personal care brand first hit the couple after the birth of their first child. Thus, Mamaearth was born which later became Honasa Consumer’s flagship brand. 

To take their business to the next level, Honasa Consumer Limited is planning to launch an IPO soon. The company submitted its Draft Red Herring Prospectus to SEBI in 2022. However, it chose to delay the upcoming IPO launch in March 2023 owing to unfavourable market conditions. 

A few months ago, the company received a green signal from SEBI to launch its IPO. As per recent news reports, Honasa Consumer plans to go public on October 31, 2023. 

Here is some useful information about Honasa Consumer Limited that you must know before investing in its upcoming IPO. 

Also Read: How does an IPO work?

Honasa Consumer Limited IPO Details

Honasa Consumer Limited recently announced October 31, 2023 as its IPO opening date. The table below will provide other essential details regarding the upcoming Honasa Consumer Limited IPO.

IPO Opening Date	October 31, 2023, Tuesday
IPO Closing Date	November 2, 2023, Thursday
Face Value	Rs. 10 per share
Lot Size	46 Shares
Price Band	Rs. 308 to Rs. 324 per share
Total IPO Size	Rs. 1,701 Crore
Fresh Issue	Shares worth up to Rs. 365 crore approximately
Offer for Sale	41,248,162 equity shares approximately
Employee Discount	Rs. 30 Per Share
Listing Date	November 10, 2023, Friday
Listing Type	Book Built Issue
Listed on	NSE and BSE

About the Company

Honasa Consumer Limited is the biggest digital-first beauty and personal care company in India in terms of its revenue. The company strives to address the beauty and personal care problems of its customers with its products. 

Honasa Consumer Limited is the parent company of Mamaearth that serves customer needs with safe, toxin-free and natural beauty products. According to the RedSeer Report, MamaEarth under Honasa Consumer Limited is the fastest-growing beauty brand to cross the Rs. 10 billion mark for annual revenue within six years of its launch.

Besides the flagship brand Mamaearth, a few other beauty and personal care brands are owned by Honasa Consumer Ltd. These brands are Ayuga, BBlunt, Dr. Sheth, Aqualogica and Derma. By September 2022, the different brands under the portfolio of Honasa Consumer have products under baby care, body care, hair care and colour cosmetic segments. 

As per the DRHP, the company successfully grew its revenue at a CAGR of 193.15% from FY 2020 to FY 2022.  Furthermore, in the online BPC Space, it owns a total market share of 5.3% in 2021 in India. 

If you analyse the company’s financial metrics, you will notice that the company’s annual revenue touched Rs. 9,643.45 million in FY 2022 from Rs. 1,141.67 million in FY 2020. In FY 2022, it was a profitable company with Rs. 144.43 million in profits after tax from losses after tax of Rs. 4280.26 million in FY2020.

IPO Tentative Timeline

Take a look at the table below to know the tentative dates for the upcoming Honasa Consumer Limited IPO launch.

Anchor Issue Date	October 30, 2023, Monday
IPO Opening Date	October 31, 2023, Tuesday
IPO Closing Date	November 2, 2023, Thursday
Basis of Allotment	November 7, 2023, Tuesday
Initiation of Refunds	November 8, 2023, Wednesday
Credit of Shares to Demat account	November 9, 2023, Thursday
Listing Date	November 10, 2023, Friday
Cut-off time for UPI Mandate Confirmation	November 2, 2023, Thursday, 5 pm

Company Financials

The following table will help you provide a clear understanding about the financial standing of Honasa Consumer Limited. This will help you plan a well-informed investment strategy. 

Particulars	For the Financial Year Ending (Figures in Rs. Million)
	March 31, 2022	March 31, 2021	March 31, 2020
Total Assets	10,350.12	3,026.39	1,810.12
Total Liabilities	3,293.88	20,677.82	6,181.82
Total Expenses	9,419.06	17,967.10	5,421.93
Total Revenue	9,643.45	4,721.01	1,141.67
Profit After Tax	144.43	(13,322.15)	(4,280.26)
EBITDA	114.59	(13,340.33)	(4,317.14)

IPO Details and Objectives

As per reports, Honasa Consumer Limited, the parent company of Mamaearth has been in talks for its plan to issue an IPO since January 2023. However, this initiative is on hold owing to unfavourable market conditions. 

Following this plan, the company submitted its DRHP to SEBI in December 2022. The company received approval for its IPO from SEBI on 3rd August, 2023. According to its draft papers, the company plans to offer equity shares worth Rs. 4,000 million as a fresh issue. In addition, the promoters and other shareholders will participate in an OFS of 4.68 crore equity shares.

With the net proceeds that this company earns, Honasa Consumer Ltd plans to invest it in business growth strategies. This involves expenses towards advertising and marketing of the brand. It also plans to focus on investments towards its subsidiary, BBlunt for launching new salons and for general corporate purposes. 

You can open a Demat and trading account by exploring our website to start investing in the upcoming Honasa Consumer Limited IPO. 

Strengths

Let’s take a look at the strengths of Honasa Consumer Ltd to help you decide whether or not to invest in this IPO. 

• The company has excellent brand-building capacity and a repeatable playbook owing to Mamaearth’s quick success since its inception.
• As a beauty and personal care company, Honasa Consumer Ltd utilises consumer listening, user conversational research and similar strategies to build a customer-centric brand.
• An omni-channel distribution business strategy allows the company to access different touchpoints. Therefore, customers do not need to rely only on offline mode to shop for Honasa Consumer’s products. 
• This company also focuses on growing its business with a data-driven contextualised marketing strategy. 
• Honasa Consumer Ltd is led and efficiently managed by an experienced founder and robust professional team.

Risks Involved

Besides the above strengths, you must take note of the following risks that can hamper the business of Honasa Consumer Limited. 

• Failure to identify and act upon the changing buying preferences of its target audience or shifting beauty and personal care trends at the right time can adversely affect the company’s business, financial conditions and operation.
• Launching new brand extensions or product line that fails to satisfy consumer requirements can hamper its business and cash flow.
• The company makes a significant revenue from a small list of products. Any downtrend in the sale of any of these main products can affect its business adversely. 

Also Read: What are types of IPO?

Conclusion

This is everything you need to know about Honasa Consumer Limited and the plan for its upcoming IPO. With this information, you can plan your investment strategy that aligns with your goals. If you are a novice investor and making these decisions seem overwhelming, consider seeking guidance from financial experts. They will help you make an informed investment decision. 

Honasa Consumer Limited IPO FAQs