The OFS comprises up to 3,186,300 equity shares by Varun Alagh and up to 100,000 equity shares by Ghazal Alagh. Among existing shareholders, 777,672 equity shares will be offloaded by Kunal Bahl, 477,300 by Rishabh Harsh Mariwala, and 777,672 by Rohit Kumar Bansal.
Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, JM Financial Limited and J.P. Morgan India Private Limited are the book running lead managers to the issue.
As per the offer document, the primary objective of Honasa Consumer is to develop products that address beauty and personal care problems consumers face. It has added five new brands to its portfolio, namely The Derma Co., Aqualogica, Ayuga, BBlunt and Dr. Sheth’s, and has built a ‘House of Brands’ architecture since launching Mamaearth in 2016. The company’s flagship brand, Mamaearth, is built to service a core customer need for safe-to-use, natural products, and focuses on developing toxin-free beauty products made with natural ingredients.
Honasa intends to use capital raised through net proceeds from fresh issue towards advertisement and capital expenses, investment in its subsidiary, and meet general corporate purposes. The company will invest ₹186 crore to meet advertisement expenses towards enhancing the awareness and visibility of its brands; ₹34.23 crore to incur capital expenditure for setting up new EBOs; and ₹27.52 crore for investment in its subsidiary, Bhabani Blunt Hairdressing for setting up new salons. A part of the fund will be also used to meet general corporate purposes and unidentified inorganic acquisition.