Owner of popular brand ‘Mamaearth’, Honasa Consumer Limited (“The Company”), also India’s largest digital-first beauty and personal care (“BPC”) company in terms of revenue from operations for the Financial Year 2022 (Source: RedSeer Report), has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”).
The Company plans to raise funds through offer of equity shares (face value ₹ 10 each) through initial public offerings. The offer comprises of fresh issue of equity shares aggregating up to ₹ 400 crore (The “Fresh Issue”) and offer for sale up to 46,819,635 equity share by Selling Shareholders (The “Offer for Sale”)
The company proposes to utilize net proceeds from fresh issue towards – (i) Advertisement expenses towards enhancing the awareness and visibility of its brands amounting to ₹ 186 core; (ii) Capital expenditure to be incurred by Company for setting up new EBOs amounting to ₹ 34.23 crore; and (iii) Investment in its Subsidiary, Bhabani Blunt Hairdressing Private Limited (“BBlunt”) for setting up new salons amounting to ₹ 27.52 crore; and General corporate purposes and unidentified inorganic acquisition.
The Offer for Sale comprises of – Up to 3,186,300 equity shares by Varun Alagh and Up to 100,000 equity shares by Ghazal Alagh (The “Promoter Selling Shareholders”); Up to 220,613 equity shares by Evolvence India Coinvest PCC invested through its Cell E, Up to 862,987 equity shares by Evolvence India Fund III Ltd, Up to 7,972,478 equity shares by Fireside Ventures Investment Fund –I, Up to 19,133,948 equity shares by Sofina Ventures S.A. and Up to 12,755,965 equity shares by Stellaris Venture Partners India I (The “Investor Selling Shareholders”); Up to 777,672 equity shares by Kunal Bahl, Up to 477,300 equity shares by RIshabh Harsh Mariwala, Up to 777,672 equity shares by Rohit Kumar Bansal and Other Selling Shareholders.
The Equity Shares that will be offered through the Red Herring Prospectus are proposed to be listed on the BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”).
Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, JM Financial Limited and J.P. Morgan India Private Limited are the Book Running Lead Managers to the issue.