Honasa Consumer Private Ltd, the first unicorn of 2022 and the parent firm of brands such as Mamaearth, The Derma Co, and BBlunt has filed draft papers with Sebi for listing to raise funds through a combination of a fresh issue and an offer-for-sale.
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The fast-growing D2C (direct-to-consumer) firm, present in the beauty, baby care, and skincare segment, was co-founded in 2016 by the husband-wife duo of Varun and Ghazal Alagh (of Shark Tank fame.) It attained unicorn status when it raised $52 million at a valuation of $1.2 billion in a fundraising round in January led by top VC firm Sequoia Capital
The shareholders who will dilute their holdings include the Alaghs, Sofina Ventures SA, Evolvence, Fireside Ventures, Stellaris Venture Partners, Snapdeal founder Kunal Bahl, Bollywood actress Shilpa Shetty Kundra, Rishabh Harsh Mariwala and Rohit Kumar Bansal. Sequoia Capital is not participating in the OFS.
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Shares of Mamaearth
The Company plans to raise funds through the offering of equity shares (face value Rs10 each) through the public issue. Mamaearth IPO comprises of fresh issue of equity shares aggregating up to ₹400 crores and an offer for sale (OFS) of up to 46,819,635 equity shares by selling shareholders.
The OFS comprises – up to 3,186,300 equity shares by promoter Varun Alagh and up to 100,000 equity shares by promoter Ghazal Alagh along with Evolvence India Fund III Ltd, Fireside Ventures Investment Fund –I, Stellaris Venture Partners India I, among others.
The other selling shareholders also include – up to 777,672 equity shares by Kunal Bahl, up to 477,300 equity shares by Rishabh Harsh Mariwala, up to 777,672 equity shares by Rohit Kumar Bansal, and up to 554,700 equity shares by actor Shilpa Shetty Kundra.
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The company proposes to utilize net proceeds from the fresh issues towards –
- Advertisement expenses towards enhancing the awareness and visibility of its brands amounting to ₹186 core;
- Capital expenditure for setting up new EBOs amounting to ₹34.23 crores; and
- Investment in its Subsidiary, BBlunt for setting up new salons amounting to ₹27.52 crores.
The Equity Shares that will be offered through the Red Herring Prospectus are proposed to be listed on the BSE Limited (BSE) and National Stock Exchange of India Limited (NSE).