Mamaearth shares tumble 5% after Rs 1,763 crore stake sale via block deal

Shares of Honasa Consumer, the parent company of Mamaearth, dipped 5% to a day’s low of Rs 495 on the NSE after the company saw a 10.9% equity stake worth Rs 1,763 crore sold via a block deal on Thursday.

Reportedly, the likely sellers in the transaction include Peak XV Partners Investments VI, Redwood Trust, Sequoia Capital Global Growth Fund III - U.S./India Annex Fund, Fireside Ventures Investment Fund I, Stellaris Venture Partners India, and Sofina Ventures SA.

It was initially reported that the sellers would offload an 8% equity stake in the company, equivalent to 263 crore shares valued at Rs 1,261 crore. However, the deal size was later increased to a sale of 10.8%.


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The deal likely occurred at Rs 480 per share, which represents an 8% discount from Wednesday’s closing price.

According to reports, Kotak and Jefferies were the bankers for Honasa in connection with the block deal.

Honasa Consumer reported a 63% year-on-year increase in its consolidated net profit for the quarter ended June 30, 2024, reaching Rs 40 crore, up from Rs 24 crore in the same quarter of the previous financial year.

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Revenue from operations for the April-June quarter was Rs 554 crore, marking a 19% increase from Rs 464 crore in the same period last year. Year-to-date, Honasa Consumer’s shares have risen by nearly 17%, and the stock has gained 30.5% over the past six months.

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