As a substantial, rapidly expanding BPC house of brands with a digital-first focus, Honasa is in an exceptional position. By 2026, its addressable market is projected to reach US$45–50 billion. It is in a unique position as a significant, rapidly expanding BPC business. It is fairly prevalent in all product categories. Honasa Consumer IPO will hit the stock market in April 2023.
Table of Contents
About Honasa Consumer
Between Financial Years 2020 & 2022, Honasa’s revenue from operations increased at a CAGR of 193.15%, while the median revenue CAGR of all other BPC businesses for which data was available for the applicable period was 13%. In terms of FY22 revenue, it is the largest digital-first BPC company in India.
By embracing a digital-first mindset, utilising technology, and creating a house of brands strategy, it has been able to scale quickly. In Financial Year 2022, Honasa, one of India’s digital-first BPC enterprises, achieved the most revenue from offline channels because to its size across both online & offline channels.
It has expanded profitably & sustainably. In terms of gross profit margins among Indian BPC companies that prioritise digital, Honasa came in second.
Growth
They have established a “House of Brands” architecture since launching Mamaearth in 2016 & have added five other brands to their portfolio, including The Derma Co., Aqualogica, Ayuga, BBlunt, & Dr. Sheth’s.
Products in the baby care, face care, body care, hair care, colour cosmetics, and fragrances divisions are included in their portfolio of brands as of September 30, 2022.
Due to their success with Mamaearth and their capacity to recognise and capitalise on emerging trends, they were able to create repeatable brand creation playbooks that aided in the rapid expansion of their more recent companies.
These playbooks are fueled by the company’s consumer-centric approach in all facets of its business model, including its innovation engine, omni-channel distribution strategy that prioritises digital.
Clientle
They also work hard to improve their brand equity & establish a stronger connection with their customers by creating “purpose driven” businesses that support social & environmental problems.
For example, as part of the Mamaearth “Plant Goodness” programme, they collaborate with a non-governmental organisation to plant trees in exchange for purchases made through their direct-to-consumer platform and to share geo-tagged pictures of these trees with customers.
Similarly, Aqualogica is affiliated with the “Fresh Water for All” initiative, through which they assist in enabling access to clean drinking water for underserved communities, and The Derma Co. is affiliated with the “Young Scientists” programme, which gives children in certain rural areas of India access to science education. Their emphasis is on well designed facilities.
Honasa Consumer IPO
Honasa Consumer Limited, headquartered in Delhi has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 400 Crore and 46,819,635 equity shares on 21 December 2022.
The offer includes a fresh issue of INR 400 Crore and there is offer for sale (OFS) of 46,819,635 equity shares by the promoters mentioned in the DRHP. They are looking for any Pre-IPO placement of INR 80 Crore in this issue.
-
- Initial Public Offering
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 30-Jun-22 | 31-Mar-22 | 31-Mar-21 | 31-Mar-20 | ||
| Total Assets | 1,155.90 | 1,035.01 | 302.64 | 181.01 | |
| Total Revenue | 732.07 | 964.35 | 472.10 | 114.17 | |
| Profit After Tax | 3.67 | 14.44 | (1,332.22) | (428.03) | |
Basic and Diluted Earnings Per Share
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2020 | (31.63) | (31.63) | 3 |
| Financial Year 2021 | (98.35) | (98.35) | 2 |
| Financial Year 2022 | 0.53 | 0.52 | 1 |
| Weighted Average | (37.79) | (37.80) | |
| 30 June 2022 | 0.25 | 0.25 |
Objects of the Issue
- Repayment/prepayment of debt.
- General corporate objectives and organic growth.
Basis of the offer
Honasa Consumer limited feel that the following business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the Offer Price:
- Possibilities for brand building and reproducible playbooks.
- Product innovation with the customer in mind.
- Distribution that prioritises digital channels.
- Contextualised data-driven branding.
- Ability to efficiently use capital to drive expansion and profitability.
- Founder-led business with a solid, experienced management team.
Honasa Consumer Peer Comparison
There are no listed companies in India or anywhere else that are the same size and in the same sector as their company.
Honasa Consumer IPO Details
| IPO Opening Date | April 2023 |
| IPO Closing Date | April 2023 |
| Issue Type | Book Building |
| Face Value | 10 per share |
| IPO Price | 0 to 0 per equity share |
| Market Lot | – |
| Min Amount | – |
| Listing At | BSE, NSE |
| Issue Size | 400 Crore & 46,819,635 equity shares |
| Fresh Issue | 400 Crore |
| Offer for Sale | 46,819,635 equity shares |
Honasa Consumer IPO Date
Honasa Consumer Limited IPO opening date is April 2023, and the closing date is April 2023. The Honasa Consumer issue may list in April 2023.
| IPO Opening Date | April 2023 |
| IPO Closing Date | April 2023 |
| Basis of Allotment Date | April 2023 |
| Initiation of Refunds | April 2023 |
| Credit of Shares to Demat Account | April 2023 |
| IPO Listing Date | April 2023 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 75 |
Roughly equivalent
|
| Non Institutional Investor | 15 |
Roughly equivalent
|
| Retail | 10 | Minimum 1 lot based on availability |
Honasa Consumer IPO Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Honasa Consumer IPO.
Honasa Consumer IPO GMP (Mamaearth IPO GMP)
Honasa Consumer Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
| April 2023 | |||
| April 2023 | |||
| April 2023 | |||
| April 2023 | |||
| April 2023 | |||
| April 2023 | |||
| April 2023 | |||
| April 2023 | |||
| April 2023 | |||
| April 2023 | |||
| April 2023 | |||
| April 2023 |
Check Out the GMP of all Other IPOs
Honasa Consumer Limited IPO Review
Honasa Consumer Limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Honasa Consumer IPO is good or bad.
Mamaearth IPO Risk
- The demand for their products could decline, negatively affecting their business, if they are slow to recognise and effectively address shifting customer tastes and spending habits as well as shifting beauty and personal care trends.
- Their brands and reputation are essential to the success of their firm and may suffer due to a number of factors, which could negatively impact their operations, finances, and cash flows.
- The introduction of new brands or goods that turn out to be a failure could have a negative impact on our expansion ambitions and their business.
- They make a large amount of money from a select few products. Any decline in sales of their flagship products will have a negative impact on their company.
Other Threats
- Due to their reliance on outside manufacturers for all of their products, they are exposed to risks that, if they come to pass, could have a negative impact on their operations, financial situation, cash flows, and business.
- Their business, financial state, cash flows, and operational outcomes may all suffer as a result of unfair trade or competitive activities that diminish sales and damage brands.
- Product recalls and product liability claims could be bad for their business. Their firm may suffer if they are unable to effectively predict consumer demand and have an ideal quantity of inventory.
- Their business and the demand for their services may suffer if they rely too heavily on celebrities and social media influencers for marketing purposes.
Mama Earth IPO Brokerage views
Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Honasa Consumer IPO:
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
Honasa Consumer Limited IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| April 2023 | 1 | |||||
| April 2023 | 2 | |||||
| April 2023 | 3 |
Honasa Consumer Limited Management
Their visionary founders, Varun Alagh (CEO) and Ghazal Alagh, lead their organisation (CIO). Their Promoter Varun has worked for companies such as Hindustan Unilever Limited, Diageo India Private Limited, and Coca-Cola India Private Limited before founding their company.
Ghazal worked for NIIT while also running dietexpert.in, an independent commercial venture. Ghazal has been a promoter and director with their company since September 16, 2016.
Their combined knowledge and understanding of the consumer packaged goods and BPC product space in India has been instrumental in the development and growth of their business.
Their founders are supported by a professional leadership team with over 100 years of combined experience in consumer packaged goods, e-commerce, and direct to consumer (DTC) companies in India.
Products
They have created a variety of tools and skills that let them interact with customers and get information about fresh, up-and-coming trends in the Indian BPC sector.
Their business strategy depends heavily on their consumer insights-led product innovation engine, which aids in the conception and development of new brand concepts, products, and product ranges.
They added 159 and 225 new SKUs to the BPC market in India during the Financial Year 2022 and the six-month period that ended on September 30, 2022, respectively.
These additions resulted in an increase of 42.17% and 44.12% in absolute revenue from operations during the corresponding periods, respectively. They have a 45-person internal innovation team that is committed to the task.
Honasa Consumer Limited‘ Promoters
- Varun Alagh
- Ghazal Alagh
Principal Shareholders’s Holding
| Pre Issue Share Holding | 37.53% |
| Post Issue Share Holding |
Honasa Consumer Limited Prospectus
Contact Details
Honasa Consumer Limited
Unit No. 404, 4th Floor, City
Centre, Plot No. 05, Sector –
12, Dwarka – South West
Delhi, New Delhi – 110 075,
India
Email: [email protected]
Telephone: +91 124 4071960
Website: www.honasa.in
Registrar
KFin Technologies Limited
Selenium, Tower B, Plot No. 31 and 32
Financial District
Nanakramguda, Serilingampally
Hyderabad, Rangareddi 500 032
Telangana, India
Tel: +91 40 6716 2222
E-mail: [email protected]
Website: www.kfintech.com
Lead Manager(s)
- Kotak Mahindra Capital Company Limited
- Citigroup Global Markets India Private Limited
- JM Financial Limited
- J.P. Morgan India Private Limited
We hope we are able to answer all your questions about Honasa Consumer IPO. If you don’t have a Demat account, open it now with Zerodha best trading app of India.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
Profit must do not engage in grey market trading or facilitate the purchase or sale of IPO forms. We don’t endorse such activities at all. We are sticky against such activities & never advise anyone to trade in grey market at all.
FAQ
Honasa Consumer Limited IPO Opening Date?
Honasa Consumer Limited IPO will open in April 2023.
Honasa Consumer Limited IPO Listing Date?
Honasa Consumer Limited IPO will list in April 2023.
Honasa Consumer IPO GMP Today?
Honasa Consumer IPO Grey Market Premium is INR 0 .
Honasa Consumer Limited IPO Allotment Date?
Honasa Consumer Limited IPO basis of allotment will be in April 2023.
Lot size for Honasa Consumer Limited IPO?
Lot size for Honasa Consumer Limited IPO is 0.
