Honasa Consumer raises Rs 765 cr from anchor investors ahead of IPO

Honasa Consumer Ltd, which owns new-age FMCG brands like Mamaearth and The Derma Co, on Monday announced that it has mobilised Rs 765 crore from the anchor investors ahead of its initial public offering (IPO).

The company has allotted 2,36,17,228 equity shares to 49 entities at Rs 324 apiece, which is the upper end of the price band, according to a circular uploaded on the BSE’s website.

Aditya Birla Sun Life Mutual Fund (MF), Axis MF, Nippon India MF, Invesco MF, SBI Life Insurance Company, ICICI Prudential Life Insurance Company, Government Pension Fund Global, Caisse De Depot Et Placement Du Quebec, SmallCap World Fund Inc, Abu Dhabi Investment Authority, and Goldman Sachs (Singapore) are among the anchor investors.

The IPO comprises a fresh issue of equity shares worth Rs 365 crore and an offer-for-sale (OFS) component of 4.12 crore 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 Bahl, Rohit Kumar Bansal, Rishabh Harsh Mariwala and Bollywood actor Shilpa Shetty Kundra.

The public issue will open for public subscription on October 31 and conclude on November 2. Further, investors can bid for a minimum of 46 equity shares and in multiples thereof.

The price band has been set at Rs 308-324 per share for its IPO.

At the upper end of the price band, the IPO is expected to fetch Rs 1,701.44 crore.

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.

In January 2022, the company had entered the unicorn club.