Upcoming IPO - Honasa Consumer Limited (Mamaearth IPO)

About Company’s Business:

The company is dedicated to the beauty and personal care industry. They manage a portfolio of six distinct beauty and personal care brands: Mamaearth, The Derma Co., Aqualogica, Ayuga, BBlunt, and Dr. Sheth’s, each offering unique value propositions. Their product lineup encompasses items in the baby care, facial care, body care, hair care, color cosmetics, and fragrances categories. To complement this product range, they operate a network of professional salons under the name BBlunt Salons.

About the Industry:

The Indian BPC product market is poised for substantial growth, with projections indicating an increase from around US$ 20 billion in 2022 to roughly US$ 33 billion by 2027. This growth is anticipated to occur at a robust compound annual growth rate (CAGR) of about 11%, which is one of the highest rates observed across the broader retail categories in India during this period, surpassing the pace of growth in other retail segments. The BPC products market is particularly well-suited for digital expansion, with the online BPC market presently valued at US$ 3 billion. It is expected to experience an impressive annual growth rate of 29%, reaching approximately US$ 11 billion by 2027, resulting in a significant online market penetration of 34%.

Key Financial Information (₹ in millions):

Here is the information presented in a tabular format:

Particulars 3 Months Ended (June 30, 2023) 3 Months Ended (June 30, 2022) FY-23 FY-22 FY-21
Equity Share Capital (in ₹ million) 1,363.36 1,360.46 1,363.36 0.13 0.13
Net Worth (in ₹ million) 6,382.63 7,009.70 6,059.01 7,056.24 (17,651.43)
Revenue from Operations (in ₹ million) 4,644.87 3,122.45 14,927.48 9,434.65 4,599.90
Restated Profit / (Loss) (in ₹ million) 247.15 (115.26) (1,509.66) 144.43 (13,322.15)
Restated Earnings per Equity Share (in ₹)
- Basic per Equity Share with a nominal value of ₹10 0.85 (0.30) (4.66) 0.53 (98.35)
- Diluted per Equity Share with a nominal value of ₹10 0.83 (0.30) (4.66) 0.52 (98.35)
NAV per Share (in ₹) 20.29 22.31 19.27 23.42 (61.80)
Current Liabilities - Financial Liabilities - Borrowings (A) (in ₹ million) 67.90 59.24 36.09 35.86 -
Non-Current Liabilities - Financial Liabilities - Borrowings (B) (in ₹ million) - - - - 19,539.99
Total Borrowings (A + B) (in ₹ million) 67.90 59.24 36.09 35.86 19,539.99

Please note that the earnings per share (EPS) values are not annualized for the three-month periods mentioned.

Objective of the Issue:

  1. Funding advertising expenses to enhance brand awareness and visibility.

  2. Covering capital expenditures for establishing new Exclusive Brand Outlets (EBOs).

  3. Investing in their subsidiary, Bhabani Blunt Hairdressing Private Limited (BBlunt), for the establishment of new salons.

  4. Supporting general corporate purposes and potential unidentified inorganic acquisitions.

  5. General corporate purposes.

For more detailed information, you can refer to the IPO Prospectus (RHP) filed by the company.

Important information regarding the IPO
Open Date Tuesday, October 31, 2023
Close Date Thursday, November 2, 2023
Issue Size ₹1,701.00 crores
Price ₹308 to ₹324 per share
Lot Size 46 shares
Basis of Allotment Tuesday, November 7, 2023
Initiation of Refunds Wednesday, November 8, 2023
Credit of Shares to Demat Thursday, November 9, 2023
Listing Date Friday, November 10, 2023

How to apply for this IPO?

You can locate the redirection link to the IPO on the home screen of the Dhan App. Alternatively, you can access it by navigating to the “Money” Section at the bottom right and swiping right to reach the “IPO” Tab.

Quick Apply for the IPO here!

Do let us know your thoughts on this IPO.


Overvalued. Inflated valuations may lead to deflation after listing. A good probability exist to buy the stock at a lower price from the secondary market IMO.