Honasa Consumer block deal: Fireside ventures to offload 1.9% stake

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.

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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.