Sequoia Capital-backed Mamaearth parent IPO likely next week

The initial public offering (IPO) of Honasa Consumer, the parent company of Mamaearth may hit Dalal Street by the end of current month. According to a report from Moneycontrol, the much-anticipated issue is likely to hit Dalal Street on October 31. However, the company did not officially confirm or deny the news.

Honasa Consumers had filed its draft red herring prospectus with the capital markets regulator Sebi in December 2022 and received the regulatory approvals in August this year. The direct-to-consumer (D2C) unicorn caters to beauty, babycare and skincare segments.

The report, citing sources, said that there is a strong demand for Mamaearth's IPO and the issue will kick off on Tuesday, October 31. Anchor book for the issue will open on Monday, October 30 and as the company is not looking to raise any funds via pre-IPO placement, it added further.

The company, as of Monday, October 23, did not claim any premium in the grey market. However, there were some enquiries with the dealers, who requested anonymity. However, the action may get stronger in the upcoming days, when the clarity and details about the issue will be made public.

However, the report threw some light on the valuations and issue size, citing sources. It claimed that the company is looking to raise about Rs 1,700 crore via IPO route, including both fresh issue and offer-for-sale, at an estimated valuation of around Rs 10,500 crore.

Co-founded in 2016 by Varun and Ghazal Alagh, Honasa Consumer attained unicorn January 2022. The company had raised $52 million by Global VC firm Sequoia Capital at a valuation of $1.2 billion. However, there was a controversy over valuations as Reuters reported that the company was targeting a valuation of $3 billion or Rs 22,000 crore, which later sparked a controversy on Social media.
 

Kotak Mahindra Capital, JM Financial, Citi and JP Morgan are the investment banks working on the IPO and Cyril Amarchand Mangaldas, IndusLaw and Khaitan & Company are the legal advisors to the IPO. KFin Technologies in the registrar for the mega issue.

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