Mamaearth's parent Honasa plans Rs 1,700 crore IPO at Rs 10,500 crore valuation on October 31: Report

Mamaearth IPO 2023: Mamaearth's parent company, Honasa Consumer Private Limited is finally ready to go public. One of the most anticipated IPOs in the Indian consumer segment space, will open on the 31st of October.

As per sources quoted by Moneycontrol, the IPO's anchor portion will open on October 30 and there are no plan for pre-IPO round.

The Mamaearth parent company received regulatory approval for the listing from SEBI in August after filling draft papers in December 2022.

The report also mentioned that the firm was looking to raise around Rs 1,700 crore from a combination of a fresh issue and an offer-for-sale and was targeting an estimated valuation of around Rs 10,500 crore.

Also Read: IPO-bound Mamaearth to raise $150mn from QIA, SoftBank & others, says report

The net proceeds of the IPO will be used for advertisement expenses to improve brand visibility and awareness, setting up new exclusive brand outlets, investment in BBlunt for setting up new salons, general corporate purposes and inorganic growth.

About Honasa Consumer

Honasa Consumer attained unicorn status in 2022, after a fund-raising round of $52 million led by Sequoia Capital at a valuation of $1.2 billion.

The firm which was co-founded in 2016 by the Varun and Ghazal Alagh husband-wife duo is a fast-growing D2C (Direct to Consumer) firm present in the beauty, babycare and skincare segments.

Mamaearth IPO 2023: Controversy overvaluation

In June 2022, furore erupted in social media after analysts questioned the firm's target of $3 billion valuation for its IPO. Co-founder Ghazal Alagh had to issue a clarification saying that there is no valuation mentioned in the draft red herring prospectus (DRHP).

“In our DRHP, as is the standard practice, there is no mention of valuation. Valuation discovery is a process which will take place over time as we get into deeper conversations with the investor community. We have not quoted or subscribed to the valuation numbers which are getting mentioned in various posts on social media. We have built this company and our brands with a lot of love, the same way we have raised our children,” she tweeted.

Honsa in the past few years has made three buyouts. It first acquired female-oriented content platform Momspresso followed by BBlunt from Godrej Consumer Products Ltd and later it expanded its product portfolio by acquiring skincare brand Dr Sheth’s. It entered the colour cosmetics category in October, 2021, offering products like liquid lipsticks, bullet lipsticks, kajal and lip balms. A month later, the firm launched a new hydration based skincare brand Aqualogica.