Honasa Consumer IPO Analysis @ Chanakyanipothi.com,
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Honasa Consumer IPO Promoters
Varun Alagh & Ghazal Alagh
Honasa Consumer: Company Details
Honasa Consumer is the largest digital-first beauty and personal care (“BPC”) company in India in terms of revenue from operations for the Financial Year 2022. Since its inception, it has worked with the primary objective of developing products that address beauty and personal care problems faced by consumers. For instance, its 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. As of September 30, 2022, Mamaearth has emerged as the fastest growing BPC brand in India to reach an annual revenue of Rs 10 billion within six years of launch.
Since launching Mamaearth in 2016, the company has added five new brands to its portfolio, namely The Derma Co., Aqualogica, Ayuga, BBlunt and Dr. Sheth’s, and have built a ‘House of Brands’ architecture. As of September 30, 2022, its portfolio of brands with differentiated value propositions includes products in the baby care, face care, body care, hair care, color cosmetics and fragrances segments.
The focus company on building thoughtfully designed and purpose driven brands has helped cultivate trust, brand resonance and affinity amongst its consumers and has enabled it to grow its business, as demonstrated by the following:
• It has grown its revenue from operations at a CAGR of 193.15% between Financial Years 2020 and 2022 (from Rs 1,097.84 million in Financial Year 2020 to Rs 9,434.65 million in Financial Year 2022), while the median revenue CAGR of all other BPC companies for which data was available for the relevant period was 13%.
• Mamaearth is the largest brand in the DTC BPC market in India in terms of revenue generated from the DTC channel in Financial Year 2022. During Financial Year 2022 and the six months period ended
September 30, 2022, 43.15% and 52.37% of its revenue from operations from this channel was attributable to existing customers, respectively.
• It had a market share of 5.3% in the online BPC market (i.e. DTC and eTailing) in India in calendar year 2021 and a market share of 26.4% in the DTC BPC market in 2021.
• Mamaearth was India’s most-searched BPC brand on Google Trends between January 2020 and November 2022.
• Mamaearth was ranked amongst the top three in terms of awareness in the grooming category on Flipkart between May 2021 and November 2022.
For more information, click www.honasa.in
Objects of the IPO
The Offer comprises the Fresh Issue and an Offer for Sale.
The company proposes to utilize the Net Proceeds towards funding the following objects:
1. Advertisement expenses towards enhancing the awareness and visibility of its brands.
2. Capital expenditure to be incurred by the Company for setting up new EBOs.
3. Investment in its Subsidiary, Bhabani Blunt Hairdressing Private Limited (“BBlunt”) for setting up new salons
|Honasa Consumer IPO Details|
|IPO opens on||(?) ,2023|
|IPO closes on||(?) ,2023|
|Issue Type||Book Built Issue IPO|
|Issue Size||(?) Sh /Rs (?) Cr|
|* Fresh Issue||Rs. 400 Cr|
|* Offer for Sale||46,819,635 Sh /Rs (?) Cr|
|Face Value per share:||Rs. 10|
|Price Band||Rs. (?)|
|Employee discount||Rs. (?) per share|
|Retail Lot Size||(?) Shares|
|Listing will at||BSE, NSE|
|Shares offered to||Shares||Rs.|
|QIB (? %)||–||Rs (?) Cr|
|NII (? %)||–||Rs (?) Cr|
|RII (? %)||–||Rs (?) Cr|
|Employees||–||Rs (?) Cr|
|Retail portion will be oversubscribed by||– Forms|
|How much Shares to Apply?|
|Min Retail Application||– Shares||Rs. –|
|Max Retail Application||– shares||Rs. –|
|Small HNI (Min) application||– Shares||Rs. –|
|Small HNI (Max) application||– shares||Rs. –|
|Big HNI Application||– shares||Rs. –|
|Honasa Consumer Tentative timetable|
|IPO opens on.||,2023|
|IPO Closes on||? ,2023|
|IPO Allotment on||? ,2023|
|Unblocking of ASBA||? ,2023|
|Credit of Shares||? ,2023|
|Listing on||? ,2023|
|Registered Office of Honasa Consumer|
|Unit No. 404, 4th Floor, City Centre, Plot No. 05, Sector – 12, Dwarka – South West Delhi, New Delhi – 110 075, India|
|IPO Lead Managers
Kotak Mahindra Capital Company, Citigroup Global, JM Financial, J.P. Morgan India
|Registrar to IPO|
|KFin Technologies Limited|
|Honasa Consumer IPO Financial & Analytical Ratios|
|Year||Total Income||Net Profit||EPS||RoNW|
|Rs.in Cr||Rs.in Cr||Rs.||%|
|Book Value of the Share on||31.03.2022||Rs.23.42|
|Book Value of the Share||after the IPO||Rs.|
|Offer Price||Rs. –|
|Upper Price Band/last EPS||–|
|Upper offer price/Book Value Ratio||–|
|Upper offer price/BV after IPO Ratio||–|
Honasa Consumer Peer Comparison
There are no listed companies in India and globally that are of comparable size from the same industry as that of the Company.
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