Mamaearth IPO put on hold for this reason

Two months after filing its IPO papers, Honasa Consumer Ltd, which owns Mamaearth has delayed its initial public offering (IPO) due to unfavourable market condition.

Skincare brand, Mamaearth had filed IPO documents in December 2022, with a fresh issue of equity shares worth Rs 400 crore and an offer-for-sale (OFS) component of 4,68,19,635 equity shares by promoters, investors and other selling shareholders.

Those offering shares in the OFS include promoters -- Varun Alagh and Ghazal Alagh -- and investors like Fireside Ventures Fund, Sofina, Stellaris, Kunal Bansal and Rohit Bansal, Rishabh Harsh Mariwala of FMCG firm Marico and Bollywood actor Shilpa Shetty Kundra.

The offer also includes a reservation of up to Rs 10 crore for subscriptions by eligible employees.

The Gurugram-based beauty and personal care company was founded in 2016 by the husband-wife duo Varun and Ghazal Alagh. It began with the launch of Mamaearth and over the years added five more brands to its portfolio, including The Derma Co, Aqualogica, Ayuga, BBlunt and Dr Sheth's, and built a 'House of Brands' architecture. Earlier this year in January 2022, the company entered the unicorn club.