Mamaearth IPO: Shilpa Shetty, Snapdeal's Kunal Bahl, Marico promoter to make up to 101x gains

The much-awaited initial public offering (IPO) of Honasa Consumer, the parent company of Mamaearth, is set to hit Dalal Street on Tuesday, October 31. The company has fixed the price band in the Rs 308-324 range. The Rs 1,701 crore-IPO would mark stake sales by some renowned marquee investors including bollywood actress Shilpa Shetty Kundra, Snapdeal's co-founder Kunal Bahl and Rohit Kumar Bansal, and Marico promoter Rishab Harsh Mariwal in addition to the husband-wife promoter duo of Varun and Ghazal Alagh.

Honasa Consumer's existing shareholders will sell 4,12,48,162 equity shares through the offer for sale (OFS), which would be worth Rs 1,336.44 crore at the upper limit of the price band. These investors are likely to fetch up to 101 times returns on their investments in Mamaearth. Honasa  Consumer will also raise Rs 365 crore in fresh issue.

Snapdeal's co-founder Kunal Bahl and Rohit Kumar Bansal's acquired shares of Honasa at an average cost of Rs 3.21 per share each and at the upper end of the price band (Rs 324), they will make up to 101 times the average cost of their holding being offering the issue. Both shareholders are selling 11,93,250 equity shares each, making an individual profit of Rs 36.54 crore.

Marico's promoter, Rishabh Harsh Mariwala's weighted average cost of acquisition was Rs 6.05 per share. He will be making gains of about 54 times for 57,00,188 equity shares being offered in the OFS. His absolute profit, net of cost, is likely to be around Rs 181.23 crore.

Bollywood actress Shilpa Shetty Kundra, who is offering 13,93,200 equity shares in the OFS process, acquired shares at Rs 41.86 apiece, will make gains of about 8 times over her investment. Her absolute profit in the issue is seen at Rs 39.30 crore.

Promoters Varun Alagh and his wife, Ghazal Alagh from Shark Tank fame, have a negligible weighted average cost of acquisition of shares of the company as they were the founders of the entity. Varun is offloading up to 31,86,300 shares, while Ghazal is selling up to one lakh shares of the company.

Among other shareholders, Fireside Ventures Fund (selling up to 79,7,478 shares), Sofina (selling up to 95,66,974 shares) and Stellaris (selling up to 1,09,42,522 shares) are also participating OFS with an average cost of acquisition of Rs 7.33, Rs 112.07 and Rs 7.82 per share, respectively.

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