Honasa Consumer is into Consumer-Beauty and Personal Care and is looking raise funds through Fresh Issue and Offer For Sale
Honasa Consumer IPO is a public offering of shares by Varun Alagh and Ghazal Alagh. The IPO will open on October 31 and will close on November 02. The price band is ₹308 to ₹324 per share and the lot size is 46 shares. The issue size is ₹1,701.44 crore. The shares are expected to be listed on on November 10 (^). Some additional information that you may find useful are: Revenue grew at a CAGR of 193.15% between FY20-22 (from ₹1,097.84 million in FY20 to ₹9,434.65 million in FY22), while the median revenue CAGR of all other BPC companies for which data was available for the relevant period was 13% (Source: RedSeer Report). Company has market share of 5.3% in the online BPC market (i.e. DTC and eTailing) in India in CY21 and a market share of 26.4% in the DTC BPC market in CY21.
EBITDA margins for FY20/FY21/FY22/6MFY23 at -393.2% / -290% / 1.2% / 1.9%. Share of Online / Offline / Services in total revenue in FY22 at 59.4% / 35.4% / 5.2% (v/s 69.9% / 28.9% / 1.2% in FY21): (**) - based on higher price band (^) indicative date
Promoters of the company are Varun Alagh and Ghazal Alagh Currently promoters hold 37.68% stake in the company.
Quick Pointers
- Company aims to raise between Rs 1,635 to 1,701 crs through this IPO.
- The net proceeds of the issue will be utilized to 1) For Advertisement expenses towards enhancingthe awareness and visibility of brands - Rs. 186 Cr. and 2) Capital expenditure for setting up new EBOs - Rs. 34.2 Cr
- Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 30-Oct-23.
- Price band for the IPO has been fixed at Rs 308 to 324 per share and bid lot are in multiple of 46 shares. The implied market cap post-issue at Rs 9,928 to 10,425 crs.
- As per the tentative schedule, allotment date of this IPO is most likely on November 07 and share are expected to be listed on BSE, NSE on November 10.
- Company has direct peer competition in India'a FMCG Consumer goods sector. In Listed space peers include Hindustan Unilever, Colgate Palmolive, Procter & Gamble Hygiene and Health Care, Dabur India, Marico, Godrej Consumer Products, Emami, Bajaj Consumer Care and Gillette India amongst others.
- Kotak Mahindra Financial, Citigroup Global, JM Financial, J.P. Morgan has been appointed as Merchant Banker to the issue. Kfin Technologies Ltd. has been appointed as official registrar of the issue.
Advertisement
IPO Quick Snapshot
About Company
Honasa Consumer established in 2016. Company own brands including mamaearth, The derma, Aqualogica, Ayuga, BBlunt and Dr. Sheth's. It is the largest digital-first BPC ( digital-first beauty and personal car) company in India in terms of revenue from operations for FY22 (Source: RedSeer Report). Company has portfolio of six BPC brands with differentiated value propositions and flagship brand, Mamaearth, has emerged as the fastest growing BPC brand in India to reach an annual revenue of ₹10 billion (in the preceding 12 months i.e. from Oct'21-Sep'22) within six years of launch (Source: RedSeer Report).
Revenue grew at a CAGR of 193.15% between FY20-22 (from ₹1,097.84 million in FY20 to ₹9,434.65 million in FY22), while the median revenue CAGR of all other BPC companies for which data was available for the relevant period was 13% (Source: RedSeer Report). Company has market share of 5.3% in the online BPC market (i.e. DTC and eTailing) in India in CY21 and a market share of 26.4% in the DTC BPC market in CY21.
EBITDA margins for FY20/FY21/FY22/6MFY23 at -393.2% / -290% / 1.2% / 1.9%. Share of Online / Offline / Services in total revenue in FY22 at 59.4% / 35.4% / 5.2% (v/s 69.9% / 28.9% / 1.2% in FY21)
About Industry
Also READ: Cello World IPO: Consumerware company IPO to begin from October 30; Key Details here
About Industry
The market for BPC products in India is expected to grow from approximately US$ 17 billion in 2021 to approximately US$ 30 billion in 2026 at a CAGR of approximately 12%, which is among the highest within the broader retail categories and faster than other retail categories in India during this period. The BPC products market lends itself well to digital penetration and the online BPC market, which is currently sized as US$ 2.5 billion, is expected to grow at 27% annually to be around US$ 8.4 billion by 2026, translating to an online penetration of 28%.
IPO Key Details:
IPO Dates
Advertisement
IPO Issue and Subscription Details
Financials
Valuation
IPO Lead Manager Details
IPO Registrar and Transfer Agent (RTA) Details
Check Allotment Status of IPO
| Please check below or visit KFin Tech link at here to check allotment status of IPO |
Source: DRHP, RHP, Company, Company Website | Logo/Images published in the article may be copyright of respective companies.
Advertisement
Posts
0 Comments