Honasa Consumer, incorporated on September 16, 2016, is the largest digital-first beauty and personal care company in India in terms of revenue from operations for the Financial Year 2022. Its flagship brand, Mamaearth, is designed to meet a core customer need for safe-to-use, natural products and focuses on developing toxin-free beauty products (as defined below) made with natural ingredients.
| Bidding Dates |
|---|
| 31 Oct 2023 - 02 Nov 2023 |
| Subscription |
|---|
| 7.61x Oversubscribed |
| Minimum Investment | Minimum Lot | Maximum Lot | Lot Size | Number of Shares | Issue Price Band | Post Issue Promoter Holding % | Issue Size | IPO Document |
|---|---|---|---|---|---|---|---|---|
| ₹14,904 | 1 | 13 | 46 | 52.5 M | ₹308 - ₹324 | 83.68 % | ₹16174.2 M - ₹17014.4 M | RHP DOC |
Honasa Consumer IPO SUBSCRIPTION STATUS
02 Nov '23Honasa Consumer IPO overall subscription rate was 7.61 times the total available shares
Honasa Consumer IPO retail subscription rate was 1.35 times in the retail segment
Honasa Consumer IPO non-institutional investor subscription rate was 4.02 times in the non-institutional investor category
Honasa Consumer IPO Qualified Institutional Bidder subscription rate was 11.5 times the available shares for Qualified Institutional Bidder
Honasa Consumer IPO Employees subscription rate was 4.88 times in the Employees category
| Day | Retail Individual Investor | HNI (NII) Investors | Qualified Institutional Buyers | Employees |
|---|---|---|---|---|
| Category Reservation | 10% | 15% | 75% | - |
02 Nov 2023 (Day 3) | 1.35x | 4.02x | 11.5x | 4.88x |
01 Nov 2023 (Day 2) | 0.62x | 0.09x | 1.02x | 3.19x |
31 Oct 2023 (Day 1) | 0.34x | 0.03x | 0.1x | 1.97x |
Honasa Consumer FINANCIALS
| Period | Net Profit (Rs in millions) | Revenue from Operations (Rs in millions) | Cash Flow from Operations (Rs in millions) | Free Cash Flow (Rs in millions) | Margins |
| Q1FY24 | 247.2 | 4,644.9 | 486.6 | 478.8 | 6.3% |
| Q1FY23 | -115.3 | 3,122.5 | 78.8 | 64.0 | -4.0% |
| FY23 | -1,509.7 | 14,927.5 | -515.5 | -633.3 | 1.5% |
| FY22 | 144.4 | 9,434.7 | 445.9 | 419.6 | 1.2% |
| FY21 | -13,322.2 | 4,599.9 | 297.3 | 287.1 | -290.0% |
Honasa Consumer IPO SUBSCRIPTION STATUS DETAILS
Honasa Consumer had 52.5 M shares on offer
Honasa Consumer IPO offer price was in the range ₹308 - ₹324
Honasa Consumer IPO minimum Investment was ₹14904
Honasa Consumer IPO issue size was ₹ 16174.2 M - ₹ 17014.4 M
Honasa Consumer had a minimum lot size of 46 Shares per application
Honasa Consumer NUMBER OF SHARES ON OFFER
Honasa Consumer IPO IMPORTANT DATES
| Issue Open Date | 31 Oct 2023 |
| Issue close Date | 02 Nov 2023 |
| Allotment Date | 03 Nov 2023 |
| Refund Date | 06 Nov 2023 |
| Demat Account Credit Date | 06 Nov 2023 |
| Listing Date | 07 Nov 2023 |
| Listing on Exchange(s) | NSE and BSE |
| Honasa Consumer Allotment Status | Exchange |
Honasa Consumer IPO subscription opened on 31 Oct 2023, and closed on 02 Nov 2023
IPO allotment for Honasa Consumer was finalized on Friday, 03 Nov 2023
IPO listing for Honasa Consumer was on NSE and BSE on Tuesday, 07 Nov 2023
Honasa Consumer IPO LISTING GAINS
| Issue Price (adjusted) | 324.0 |
| Listing Open Price | 330.0 |
| Listing Close Price | 337.1 |
| Listing Gain% | 1.9% |
| Current Gain% | 47.4% |
Honasa Consumer Peer
| Stock | Stock Price | Market Cap (Rs crore) | PE TTM | PEG TTM | PS TTM | ROE% | ROA% | Annual Revenue (Rs crore) | Annual Revenue Growth % | Annual Net Profit (Rs crore) | Annual Net Profit Growth % | EPS TTM | EPS TTM Growth % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Honasa Consumer Ltd. | 477.6 | 15366.5 | 77.9 | 0.4 | 6.5 | 14.2 | 9.6 | 2475.5 | 15.4 | 199.9 | 175.1 | 6.1 | 175.1 |
| Hindustan Unilever Ltd. | 2096 | 492474.3 | 32.9 | 0.9 | 7.4 | 30.8 | 18.8 | 65219 | 1.7 | 15040 | 41.2 | 63.7 | 38.6 |
| Marico Ltd. | 862 | 111920.9 | 59.3 | 4.5 | 7.8 | 41.8 | 17.5 | 13815 | 25.1 | 1762 | 8.2 | 14.5 | 13.1 |
| Godrej Consumer Products Ltd. | 1050 | 107447 | 56.2 | 17.5 | 6.7 | 14.7 | 8.7 | 15444.1 | 5.2 | 1861.5 | 0.5 | 18.7 | 3.2 |
| Dabur India Ltd. | 410 | 72732 | 36.9 | 3.4 | 5.4 | 16.6 | 10.8 | 13792.3 | 5.2 | 1895 | 7.2 | 11.1 | 10.7 |
| Colgate-Palmolive (India) Ltd. | 2030 | 55213.1 | 41 | -12.5 | 8.9 | 83.7 | 38.9 | 6124.2 | -0.9 | 1325.3 | -7.8 | 49.6 | -3.3 |
Honasa Consumer INFORMATION ON IPO ISSUE
About Honasa Consumer
Honasa Consumer, incorporated on September 16, 2016, is the largest digital-first beauty and personal care company in India in terms of revenue from operations for the Financial Year 2022. Its flagship brand, Mamaearth, is designed to meet a core customer need for safe-to-use, natural products and focuses on developing toxin-free beauty products (as defined below) made with natural ingredients.
Object of the Issue
- Advertisement expenses towards enhancing the awareness and visibility of the brands
- Capital expenditure to be incurred by the company for setting up new EBOs.
- Investment in the subsidiary, Bhabani Blunt Hairdressing Private Limited, for setting up new salons.
- General corporate purposes and unidentified inorganic acquisition.
Honasa Consumer - PROMOTERS
| Name |
|---|
| Varun Alagh |
| Ghazal Alagh |
Honasa Consumer Book Running Lead Manager
Kotak Mahindra Capital Company Limited
honasa.ipo@kotak.com
Citigroup Global Markets India Private Limited
honasaipo@citi.com
J.P. Morgan India Private Limited
HONASA_IPO@jpmorgan.com
Honasa Consumer Book Running Lead Managers
JM Financial Limited
honasa.ipo@jmfl.com
Honasa Consumer Registrar to the Offer
KFin Technologies Private Limited
hcl.ipo@kfintech.com
Honasa Consumer Strengths
Fast growing
As of September 30, 2022, the company's flagship brand, Mamaearth, has emerged as the fastest-growing BPC brand in India, reaching an annual revenue of Rs 1,000 crore within six years of launch. It was also India's largest digital-first BPC brand in terms of revenue in FY22
Consumer-centric product innovation
Over the last six years, the company has built multiple tools and capabilities aimed at capturing insights into consumer needs and identifying white spaces and consumer trends faster
Digital-first omnichannel distribution
The omnichannel network allows the company to be present across various touchpoints and serve consumers wherever they shop. Its distribution model is led by its digital presence
Honasa Consumer Risks
Dependent on its brand
The company's brands and reputation are critical to the success of its business and may be adversely affected for various reasons, which could have an adverse effect on the business
Dependent on limited products
The company derives a significant amount of its revenue from a limited number of products. Any decrease in the sales of these key products will adversely affect the business
Negative cash flows
The company has experienced negative cash flows from operating, investing, and financing activities in the past and may continue to experience negative cash flows in the future
IPO FAQs
This IPO consists of an offer for sale of up to Rs 1,336.4 crore, of 41,248,162 shares. It also consists of a fresh issue of Rs 365.0 crore.
The promoters of the company are Varun Alagh and Ghazal Alagh.
The category allocation of qualified institutional buyers is 75.0%, the category allocation of non individual investors or high networth individuals is 15.0% and for retail investors it is 10.0%.
The price band of the IPO is Rs 308.0 - 324.0.
The IPO application opens on Oct 31, 2023 and closes on Nov 02, 2023.
The minimum lot size for the IPO is 46. The maximum lot size for the IPO is 598.
For all category investors, the minimum application amount for this IPO is Rs. 14,904.0, the maximum value for this IPO is Rs 193,752.0.
This IPO will be allotted on Nov 03, 2023.
The refund will be credited to your account on Nov 06, 2023.
The allotted shares will be credited to your demat on Nov 06, 2023.
Honasa Consumer Ltd.’s shares listed on the stock exchanges on Nov 07, 2023.