Tuesday,11 June 2024, Bengaluru, India
Honasa Consumer is the parent company of Mamaearth, which reported a 4.8% drop in shares this morning. The sharp drop came after the startup secured a significant deal of Rs 291 crore. Approximately 2 percent of the stake in the company changed hands in the transaction of Rs 66.2 lakh. The average price of the block deal was Rs 439 each, with a 4% discount from previous stock and closing at Rs 457.95 per share.
Honasa Consumer is a digital-first beauty and personal care brand aiming to meet the various needs of customers. CNBC-TV18 mentioned that Sofia Ventures and Fireside Ventures are more likely to be the sellers involved in the deal transaction. These two firms were looking to sell around a 2 percent stake in Honasa Consumer through a block deal to raise Rs 273.2 crore. Fireside Ventures: The investment fund holds a 5.28% stake in the parent company of Mamaearth, while Sofina Ventures owns 6.16 percent of the company’s stake.
Honasa consumer trading at Rs 440.20 on NSE while the block deal went down in volumes of the counter. The company reported a net profit of Rs 30.47 crore in its fourth quarter of this financial year. This was the highest-ever quarterly profit recorded by the company so far. Last year, the company experienced a loss of Rs 161.85 crore for the same period.
The operational revenue for Honasa Consumer increased by 21.5 percent to Rs 471.09 on a year-on-year basis in the same period. After seeing the fourth quarter result of Mamaerath’s parent company, brokerage ICICI Securities increased its earnings estimates. The Indian stock market previously crashed following the general elections as the BSE Sensex declined by 5.80%, followed by the NSE 50, which tipped off by 6.22% because the BJP had to depend on allies to form a government at this time. This stock market crash added to the loss of Honasa Consumer Ltd.’s stake.
Conclusion
The parent company of Mamaearth, Honasa Consumers, reported a drop in shares of up to 4.8 percent. Approximately 2 percent of the stake in the company changed hands in the transaction of Rs 66.2 lakh. The share drop came just after the firm closed a significant deal of Rs 291 crore. Sofia Ventures and Fireside Ventures are more likely to be the sellers involved in the transaction. These two firms were looking to sell around a 2 percent stake in Honasa Consumer through a block deal to raise Rs 273.2 crore.
Sofina Ventures owns 6.16 percent of the company’s stake, followed by Fireside Ventures Investment Fund, which owns a 5.28% stake. Following Mamaerath’s parent company’s fourth-quarter results, brokerage ICICI Securities increased its earnings estimates. The decline in Indian stock market shares also contributed to the startup’s share loss. The average price of the block deal was Rs 439 each, with a 4% discount from previous stock and closing at Rs 457.95 per share.
