MamaEarth’s parent receives nod from SEBI for IPO

Honasa Consumer Ltd, the parent firm of D2C brands such as MamaEarth, The Derma Co, and BBlunt, has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering.

This is a positive development as it comes at a time when several startups have either deferred their IPO plan or struggled to receive a nod from the market regulator.

MamaEarth’s parent filed its DRHP with SEBI in December last year. In March, media reports also suggested that the company had put its listing plan on hold. The Ghazal and Varun Alagh-led company, however, dismissed such reports.

The proposed IPO consists of the combination of fresh proceeds of up to Rs 400 crore and an offer for the sale of up to 46,819,635 equity shares held by the investors.

As per the DRHP, both founders collectively own 43.54% stake in the company while Peak XV Partners (earlier Sequoia Capital), Fireside Ventures, and Stellaris are the major stakeholders with 20.94%, 15.01%, and 11.24% stake respectively.

MamaEarth is also among a handful of profitable companies that have IPO in the pipeline in the past couple of years.

The Gurugram-based company is yet to file FY23’s financial numbers but it recorded an operating income of Rs 722 crore in the first six months of FY23 (H1 FY23). The firm registered a 2X growth in scale to Rs 943 crore in FY22 while its profits reduced by 50.3% to Rs 14.4 crore.