Mamaearth parent Honasa raises Rs 765 crore from anchor investors ahead of IPO

Mamaearth parent company Honasa Consumer has raised Rs 765.19 crore from 49 anchor investors ahead of its initial public offering (IPO) launch on Tuesday. The company has also allocated shares worth Rs 253.61 crore to domestic mutual funds.

For the anchor portion, the company has allocated 2.36 crore shares at Rs 324 apiece. US financial services major Capital Group has been allocated 8.77% of the anchor investor portion, followed by crossover investor Fidelity, Norges Bank and Abu Dhabi Investment Authority (ADIA).

The IPO will launch on Tuesday and close on November 2.


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In its red herring prospectus, the company had said that the existing shareholders that are participating in the IPO could allocate up to 60% of the portion reserved for qualified institutional buyers (QIBs), to anchor investors, of which one-third shall be reserved for domestic mutual funds.

Other anchor investors include Franklin Templeton, Whiteoak Capital, Goldman Sachs and Invesco. Foreign portfolio investors (FPIs) were allocated 54.7% of the anchor investor allocation, while the remaining was allotted to domestic investors.

The domestic mutual fund component saw shares being allocated to seven funds through 19 schemes by fund houses such as ICICI Prudential, Canara Robeco, Nippon India Mutual Fund, and Axis Mutual Fund. Several insurance companies such as Aditya Birla Sun Life, Max Life Insurance, Bharti Axa Life Insurance and Bajaj Allianz Life Insurance also participated in the anchor investor bidding.

Through the public offering, the omnichannel beauty and personal care retailer plans to raise up to Rs 1,701 crore – of which Rs 365 crore is through issue of fresh shares with the remaining through an offer-for-sale (OFS) component of 4.13 crore shares.

The price band for the offering has been fixed at Rs 308-324.

In December last year, when Honasa Consumer had issued its draft red herring prospectus, the company had planned for a Rs 400 crore fresh issue. The OFS component of the issue has also been reduced from an initially planned 4.68 crore shares.

Among the selling shareholders, Honasa cofounders Varun and Ghazal Alagh will sell stakes worth up to Rs 103 crore and Rs 3 crore, respectively, at the upper limit of the band.

The company’s investors, Stellaris Venture Partners and Sofina, will sell stakes worth up to Rs 355 crore and Rs 310 crore, respectively.

Fireside Ventures will sell shares worth up to Rs 258 crore, while Marico’s Rishabh Mariwala will sell his stake worth up to Rs 185 crore. Other selling shareholders include Snapdeal cofounders Kunal Bahl and Rohit Bansal, and actor Shilpa Shetty Kundra.