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?
Table of Content
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
JP Morgan India Private Limited, JM Financial Limited, Kotak Mahindra Capital Limited and Citigroup Global Markets India Private Limited are the Book Running Lead Managers of Honasa Consumer Ltd.
Honasa Consumer Ltd IPO will open on 31st October and close on 2nd November of this year as per recent news reports.
KFin Technologies Limited is the registrar of Honasa Consumer Limited IPO
The equity shares of Honasa Consumer will be listed on both NSE and BSE.
