Honasa Consumer is a parent company of Mamaearth that reported a 6% drop in its shares this morning. Following the block deal announcement, the company’s shares dropped to a low of Rs 490 per share on the NSE. Approximately 10.9 percent of the stake changed hands in the transaction of Rs 1,763.3 crore. The average price of the block deal was Rs 500 each, with a 4% discount from previous stock, and about 3.5 crore shares of Honasa were traded in the transaction. CNBC-TV18 reported.
Honasa consumers trading at Rs 547 per share on NSE for September 10, while the block deal went down in volumes of the counter. The company reported a profit after tax of Rs 40.2 crore in its first quarter of FY25. The operational revenue witnessed a 19.3 percent YoY increase to Rs 554 crore in the same duration. The development came after the block deal held in June when Sofina Ventures and Fireside Ventures were reported to sell around 2 percent stake worth Rs 291 crore in Honsana consumers.
Mamaearth’s parent company Honasa Consumer is a digital-first beauty and personal care brand that aims to meet the various needs of customers. Some of the reports mentioned that some of the most likely investors may include Peak XV Partners, Sequoia Capital, Redwood Trust, Fireside Ventures, Sofina Ventures, and Stellaris Ventures. They planned to divest around 8.1 percent stake through block deals in the Honsana Consumer. The deal size may increase today to 10.9 percent with the ongoing rounds. Peak XV Partners holds an 18.69 percent stake in the parent company of Mamaearth in the first quarter of June this year.
Earlier this year, the brokerage ICICI Securities increased its earnings estimate for Mamaearth’s parent company after seeing the financial results for the fourth quarter. The subsidiary of Honasa, Mamaearth has raised over 89.4 million USD across multiple funding rounds, including a $755k funding round led by angel investors in 2022. Honasa Consumer provides multi-category products through its subsidiaries and online platforms. The company offers several beauty products including color cosmetics, hair care, and face or body care products. Honasa faces competition from other online beauty product selling platforms like Clensta, and Nat Habit.
Conclusion :
The parent company of Mamaearth, Honasa Consumers reported a drop in shares of up to 6 percent. Around 10.9 percent company’s stake changed hands in the transaction via a block deal of Rs 1,763.3 crore. The shares decreased just after the Rs 1,763 crore stake sale announcement. Peak XV Partners, Redwood Trust, Fireside Ventures, Sequoia Capital, Stellaris Ventures, and Sofina Ventures are more likely to be the sellers involved in the deal.
These shareholders plan to sell around an 8.1 percent stake in Honasa Consumer through a block deal. Peak XV Partners owns 18.69 percent of the company’s stake. The Honsasa’s 3.5 crore shares were traded at the transaction floor price of Rs 500 each, with a 4% discount from the previous close.
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