Honasa Consumer Ltd is poised for heightened market attention as Fireside Ventures, a public shareholder, plans to divest 61 lakh shares, equating to a 1.9% stake in the company, according to media reports. Following a 4.04% decline, the stock closed at Rs 383.50 on Monday, with the 61 lakh shares valued at Rs 234 crore at the prevailing price.
As of September 30, Fireside Ventures holds a substantial 7.57% stake in Honasa Consumer, valued at Rs 934 crore based on Monday's closing price. Since its market debut on November 7, shares of the Mamaearth parent have surged by 18.36% over the issue price of Rs 324.
Sources indicate that a block deal is slated for December 5, with CNBC-Awaaz suggesting a floor price range of Rs 368.70-384.10, signaling a potential discount of up to 4%. Kotak Securities is reportedly overseeing the deal as the broker.
Also read/watch - Market Opening: Sensex crosses 69,000 for first time as equity market scale new peaks
In parallel news, global brokerage Jefferies has revised the target price for Honasa Consumer, the force behind the Mamaearth brand, to ₹530, up from ₹520. This adjustment reflects an estimated 52% upside post robust second-quarter results. The stock experienced a notable 20% rally, reaching an all-time high of ₹423.75 per share on Thursday, trading 19.99% higher on the NSE at 10:04 am.
In the Q2 report, the D2C unicorn showcased strength in both topline and margin, with the company's bottom line doubling on a low base. The Honasa stock, marking its market debut on November 7, continues to surge, currently trading at its highest level and boasting a 28% increase over its issue price of ₹324. The intricate dynamics surrounding the block deal and Jefferies' optimistic target price contribute to the evolving narrative of Honasa Consumer's market performance.