- About Mamaearth
- Mamaearth IPO Date & Price Band Details
- Mamaearth IPO Allotment & Listing Dates
- Profit & Loss (All Figures in Crores. Adjusted EPS in Rs.)
- Balance Sheet (All Figures are in Crores.)
- Strengths of Honasa Consumer Limited:
- Risk Factors Associated with Honasa Consumer Limited:
- Company Promoters
- Mamaearth IPO Registrar
- Mamaearth IPO Lead Managers aka Merchant Bankers
- Company Address
About Mamaearth
Mamaearth, a brand launched by Honasa Consumer in 2016, has established itself as the largest digital-first beauty and personal care (BPC) company in India, based on its revenue from operations for the fiscal year 2023. Their primary mission has been to create products that effectively address beauty and personal care issues faced by consumers.
The company distributes its products through a combination of online and offline channels, employing an omnichannel distribution strategy. Mamaearth achieved a significant market share, representing approximately 5.4% of the online BPC market (direct-to-consumer and e-commerce) in India in 2022. In the same year, it also secured a market share of 1.5% of the total BPC market and a substantial 28.9% of the direct-to-consumer BPC market in India.
Furthermore, Honasa Consumer has expanded its brand portfolio by adding five new brands, namely The Derma Company, Aqualogica, Ayuga, BBlunt, and Dr. Sheth’s, creating a ‘House of Brands’ structure. As of June 30, 2023, their portfolio encompasses a wide range of products across various segments, including baby care, face care, body care, hair care, color cosmetics, and fragrances.
One of the most impressive aspects of Honasa Consumer’s performance is its revenue growth. Between fiscal years 2021 and 2023, the company achieved an impressive Compound Annual Growth Rate (CAGR) of 80.14%, with revenue increasing from INR 459.99 crore in FY 2021 to INR 1,492.75 crore in FY 2023. This remarkable growth significantly outpaces the median revenue CAGR of other BPC companies for which data was available, which stood at 28.00% during the same period.
Mamaearth IPO Date & Price Band Details
| Parameter | Details |
|---|---|
| IPO Open | October 31, 2023 |
| IPO Close | November 2, 2023 |
| IPO Size | Approx ₹1,950 Crores |
| Fresh Issue | Approx ₹365 Crores |
| Offer for Sale | Approx 41,248,162 shares |
| Face Value | ₹10 Per Equity Share |
| IPO Price Band | ₹345 to ₹355 Per Share |
| IPO Listing on | BSE & NSE |
| Retail Quota | 10% |
| QIB Quota | 75% |
| NII Quota | 15% |
| Discount | N/A |
| DRHP Draft Prospectus | Link to DRHP |
| RHP Draft Prospectus | Link to RHP |
Mamaearth IPO Allotment & Listing Dates
| Event | Date |
|---|---|
| Anchor Investors Allotment | October 30, 2023 |
| IPO Open Date | October 31, 2023 |
| IPO Close Date | November 2, 2023 |
| Basis of Allotment | November 7, 2023 |
| Refunds | November 8, 2023 |
| Credit to Demat Account | November 9, 2023 |
| IPO Listing Date | November 10, 2023 |
Profit & Loss (All Figures in Crores. Adjusted EPS in Rs.)
| Particulars | MAR 2020 | MAR 2021 | MAR 2022 |
|---|---|---|---|
| Net Sales | 109.78 | 459.99 | 931.76 |
| Total Expenditure | 541.50 | 1,794.02 | 916.13 |
| Operating Profit | -431.71 | -1,334.03 | 15.63 |
| Other Income | 4.38 | 12.11 | 20.68 |
| Interest | 0.05 | 0.98 | 2.85 |
| Depreciation | 0.65 | 1.71 | 5.65 |
| Exceptional Items | 0 | 0 | 0 |
| Profit Before Tax | -428.03 | -1,324.61 | 27.80 |
| Provision for Tax | 0 | 7.61 | 7.94 |
| Net Profit | -428.05 | -1,332.21 | 19.98 |
| Adjusted EPS (Rs.) | -42,799.28 | -1,33,211.17 | 1,986.65 |
Balance Sheet (All Figures are in Crores.)
| Particulars | MAR 2020 | MAR 2021 | MAR 2022 |
|---|---|---|---|
| Equity and Liabilities | |||
| Share Capital | 0.01 | 0.01 | 1,792.95 |
| Total Reserves | -437.18 | -1,765.16 | -1,080.81 |
| Borrowings | 592.76 | 1,954 | 0 |
| Other N/C liabilities | 0.68 | 20.96 | 49.56 |
| Current liabilities | 24.74 | 92.82 | 190.24 |
| Total Liabilities | 181.01 | 302.64 | 951.94 |
| Assets | |||
| Net Block | 1.01 | 21.09 | 97.75 |
| Capital WIP | 0 | 0 | 0 |
| Intangible WIP | 0 | 0 | 1.88 |
| Investments | 0 | 0 | 202.19 |
| Loans & Advances | 0.37 | 0.89 | 4.70 |
| Other N/C Assets | 0 | 5.33 | 75.12 |
| Current Assets | 179.63 | 275.34 | 570.30 |
| Total Assets | 181.01 | 302.64 | 951.94 |
Strengths of Honasa Consumer Limited:
- Brand-building Capabilities and Repeatable Playbooks: The company has a strong knack for building and positioning brands successfully in the market.
- Customer-centric Product Innovation: Their product development is heavily centered around understanding and catering to customer needs and preferences.
- Digital-first Omnichannel Distribution: Honasa Consumer has adeptly embraced the digital age, ensuring their products are easily accessible across online and offline channels.
- Data-driven Contextualized Marketing: The company leverages data analytics to tailor their marketing strategies, ensuring they remain relevant and impactful.
- Capital Efficiency in Driving Growth & Profitability: Their business model and operational strategies have proven to be effective in scaling the business without excessive capital burn.
- Strong Leadership: As a founder-led company, Honasa Consumer combines the vision of its founding members with the expertise of a robust professional management team.
Risk Factors Associated with Honasa Consumer Limited:
- Adapting to Consumer Trends: There’s a potential risk if the company fails to promptly identify and respond to shifting consumer preferences and evolving beauty and personal care trends.
- Revenue Concentration: Honasa Consumer relies heavily on a limited range of products for a considerable part of its revenue.
- Third-party Vendor Reliance: The company’s entire product range is sourced from third-party vendors, exposing it to supply chain vulnerabilities.
- Competitive Practices: The business might face challenges due to unfair competition or detrimental trade practices in the market.
- Product Liabilities and Recalls: The company might be susceptible to product liability claims or the need to recall products due to unforeseen issues.
- Inventory Management: Any inability to accurately gauge consumer demand could lead to inventory imbalances, potentially impacting sales and profitability.
- Celebrity & Influencer Dependence: Their marketing strategy heavily depends on celebrities and influencers. Any negative events or shifts in influencer popularity could impact brand perception.
- Offline Sales Network Expansion: The company might face challenges in managing or growing its offline distribution channels effectively.
Company Promoters
- VARUN ALAGH
- GHAZALALAGH
Mamaearth IPO Registrar
Kfin Technologies Limited
Phone: 04067162222, 04079611000
Email: hcl.ipo@kfintech.com
Website: https://kosmic.kfintech.com/
Mamaearth IPO Lead Managers aka Merchant Bankers
- Kotak Mahindra Capital Company Limited
- Citigroup Global Markets India Private Limited
- Jm Financial Limited
- J.P. Morgan India Private Limited
Company Address
Honasa Consumer Limited
Unit No. 404, 4th Floor, City Centre,
Plot No. 05, Sector – 12,
Dwarka – South West Delhi,-110 075
Phone: +91 124 4071960
Email: compliance@mamaearth.in
Website: http://www.honasa.in/
Naren is a finance graduate who is passionate about cryptocurrency and blockchain technology. He demonstrates his expertise in these subjects by writing for cryptoetf.in. Thanks to his finance background, he is able to write effectively about cryptocurrency.