Honasa Consumer
Book Building issueMainboard₹1,701 Cr issue
0.00%
Listing gain over issue price
Issue size
₹1,701 Cr
1 lot at cut-off
₹14,904
Lot size
46shares
Open
31 Oct 2023
Close
02 Nov 2023
Allotment
06 Nov 2023
Listing
07 Nov 2023
Listing performance
Issue price
₹324
Listed at
₹324
Listing-day close
₹337.15
Latest price
₹431.80
Close on 23 Oct 2026
Listing gain
0.00%
Return since issue
+33.27%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 31 Oct 2023 – 02 Nov 2023
- Listing date
- 07 Nov 2023
- Face value
- ₹10 per share
- Issue price
- ₹324 per share
- Lot size
- 46 shares
- Issue type
- Book Building issue
- Total issue size
- ₹1,701 Cr
- Market cap at offer price
- ₹10,425 Cr
- Promoter holding
- 37.40% → 35.08% pre-issue → post-issue
- ISIN
- INE0J5401028
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Kotak Mahindra Capital Co.Ltd.
- Registered office
- Unit No.404, 4th Floor, City Centre, Plot No.05, Sector-12, Dwarka-South West, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 2,36,17,228 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 46 shares per lot, in multiples, at ₹324
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 46 | ₹14,904 |
| Retail (max) | 13 | 598 | ₹1,93,752 |
| S-HNI (min) | 14 | 644 | ₹2,08,656 |
| S-HNI (max) | 67 | 3,082 | ₹9,98,568 |
| B-HNI (min) | 68 | 3,128 | ₹10,13,472 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
2,36,17,228
Anchor portion
₹765 Cr
at ₹324 per share
Valuation and performance
Valuation at offer price
₹324 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 4.66 | — |
| P/E (×) | 69.53 | — |
| Market cap | — | ₹10,425 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- −23.57%
- NAV per share
- ₹19.27
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Honasa Consumer
Honasa Consumer Limited is a beauty and personal care (BPC) company incorporated in India that develops and sells products under six brands: Mamaearth, The Derma Co., Aqualogica, Ayuga, BBlunt, and Dr. Sheth's. The company's product portfolio includes baby care, face care, body care, hair care, color cosmetics and fragrances, supplemented by BBlunt Salons, a professional salon chain. The company sells its products through online channels (third-party e-commerce marketplaces and direct-to-consumer via brand websites and mobile apps) and offline channels (general trade, modern trade, exclusive brand outlets, institutional sales, and exports). The company outsources all manufacturing to third-party contract manufacturers and does not own manufacturing facilities. Promoters Varun Alagh and Ghazal Alagh incorporated the company as Honasa Consumer Private Limited on September 16, 2016, which was subsequently converted to a public limited company on November 11, 2022.
Company Analysis
from RHPHonasa Consumer Limited is a beauty and personal care company operating a portfolio of six differentiated BPC brands spanning baby care, face care, body care, hair care, color cosmetics, fragrances, and professional salons.
Honasa Consumer Limited is a beauty and personal care (BPC) company incorporated in India that develops and sells products under six brands: Mamaearth, The Derma Co., Aqualogica, Ayuga, BBlunt, and Dr. Sheth's. The company's product portfolio includes baby care, face care, body care, hair care, color cosmetics and fragrances, supplemented by BBlunt Salons, a professional salon chain. The company sells its products through online channels (third-party e-commerce marketplaces and direct-to-consumer via brand websites and mobile apps) and offline channels (general trade, modern trade, exclusive brand outlets, institutional sales, and exports). The company outsources all manufacturing to third-party contract manufacturers and does not own manufacturing facilities. Promoters Varun Alagh and Ghazal Alagh incorporated the company as Honasa Consumer Private Limited on September 16, 2016, which was subsequently converted to a public limited company on November 11, 2022.
Beauty and personal careBaby care productsFace care productsBody care productsHair care productsColor cosmeticsFragrancesProfessional salon services
Objects of the Issue
- Advertisement expenses towards enhancing the awareness and visibility of our brands ₹1,820.00 million p.31
- Capital expenditure for setting up new exclusive brand outlets (EBOs) ₹206.00 million p.31
- Investment in Subsidiary BBlunt for setting up new salons ₹260.00 million p.31
- General corporate purposes and unidentified inorganic acquisition p.31
- Repayment of borrowings
- Funding capex for EBOs (Exclusive Brand Outlets) p.56
- Funding capex for salons p.56
- Advertising and marketing strategies p.56
- General corporate purposes
- Advertisement expenses towards enhancing the awareness and visibility of our brands ₹1,820.00 million p.115
- Capital expenditure to be incurred by our Company for setting up new EBOs ₹206.00 million p.115
- Investment in our Subsidiary, Bhabani Blunt Hairdressing Private Limited (BBlunt) for setting up new salons ₹260.00 million p.115
- General corporate purposes and unidentified inorganic acquisition p.115
- Funding capex for expansion of offline distribution network and setting up of new EBOs and modern trade partnerships p.110
- Investment in our Subsidiary, BBlunt, for setting up new salons p.115
- General corporate purposes and unidentified inorganic acquisitions p.117
Issue Structure
- Total Issue
- Up to [●] Equity Shares aggregating up to ₹ [●] million
- Fresh Issue
- Up to [●] Equity Shares aggregating up to ₹3,650.00 million
- Offer for Sale
- Up to 41,248,162 Equity Shares aggregating up to ₹ [●] million
- Price Band
- [●] (Floor Price) to [●] (Cap Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹10 each
Business Model
The company earns revenue from the sale of beauty and personal care products across its six brands through online channels (third-party e-commerce marketplaces and direct-to-consumer sales via websites and mobile applications) and offline channels (general trade outlets, modern trade chains, exclusive brand outlets, institutional sales, and export sales). The company also generates revenue from professional salon services through its BBlunt Salons. All products are manufactured by third-party contract manufacturers; the company does not own manufacturing facilities.
Business Segments
Flagship brand offering beauty and personal care products
Differentiated BPC brand in the portfolio
Differentiated BPC brand in the portfolio
Differentiated BPC brand in the portfolio
Professional salon chain and personal care brand
Differentiated BPC brand in the portfolio
Operates six brands in the BPC segment: Mamaearth (flagship brand), The Derma Co., Dr Sheth's, Aqualogica, BBlunt (hair care and salons), and Fusion (Fusion Cosmeceutics, acquired April 2022). Products include skincare, haircare, and beauty care across face care, hair care, and other categories.
Operates Momspresso, a content platform under subsidiary Just4Kids Services Private Limited (acquired December 2021). The company scaled down majority of Momspresso's business verticals in FY2023 due to underperformance.
Operates 10 salons across India (as of June 30, 2023) under the BBlunt brand following acquisition in calendar year 2022. Locations: 4 in South, 3 in East, 3 in West, 0 in North.
Baby care, face care and body care brand launched in 2016
Dermatology-focused skincare brand
Water-based skincare brand
Ayurveda-based personal care brand
Professional hair care and salon services brand acquired in March 2022
Specialized skincare brand acquired in April and December 2022
Flagship brand offering toxin-free beauty products made with natural ingredients across baby care, hair care, face care, body care, color cosmetics, and fragrances, with purpose-driven initiatives like Plant Goodness tree-planting and Plastic Positive recycling
Science-backed skincare brand powered with active ingredients, offering solutions for skin and hair conditions with AI-enabled skin assessment and Young Scientists educational initiative for rural India
Specialized skincare brand leveraging science of hydration with six product ranges (Hydrate+, Glow+, Radiance+, Clear+, Detan+, Illuminate+) specifically designed for Indian skin types and Fresh Water for All initiative
Ayurvedic beauty products in modern, easy-to-use formats for Indian millennials spanning face, body and hair care with products like night gel, face serum, sunscreen, shampoo and conditioner
Professional hair care and styling products enabling salon-like experience at home, acquired March 2022, with heritage from BBlunt Salons launched in 2004
Specialized skincare solutions with bio-actives and natural ingredients crafted by three generations of skin specialists, designed for Indian skin types, acquired April 2022
Professional salon chain offering hair care, grooming, styling services for women and men, including training academies offering barbering, hair coloring, hairdressing courses, and shooting/filming services
Flagship brand focusing on toxin-free beauty products made with natural ingredients launched in 2016; achieved fastest growing BPC brand status reaching ₹10,000 million annual revenue within six years of launch
Science-backed skincare brand powered with active ingredients launched in 2020
Professional hair care and styling products enabling salon-like experience at home; also operates salons and hair styling services; acquired in 2022
Hydrating skincare brand designed for Indian skin types launched in 2021
Ayurvedic products in easy-to-use, modern formats for Indian millennials launched in 2021
Bio-actives based skincare designed by three generations of skin specialist; acquired in 2022
Content platform providing meaningful and relevant content to women; also serves as basis for influencer marketing and content development; acquired in 2021
Traded goods including baby care, skin care, hair care and other related consumer products
Content creation and influencer marketing services
Hair care salon and styling services
Flagship brand focused on toxin-free beauty products made with natural ingredients, serving baby care, face care, body care, hair care, hair color and fragrances categories
Brand focused on dermatological skincare, associated with a 'Young Scientists' program providing science education in rural India
Brand associated with a 'Fresh Water for All' initiative providing access to clean drinking water for marginalized communities
Hair care and salon services brand acquired in March 2022, offering hairdressing and styling services
Skincare and beauty brand acquired in FY2023, providing dermatologically-developed personal care products
Newer brand offering personal care products, launched during FY2022
Direct-to-consumer platforms and e-commerce marketplace sales
Traditional retail through general trade, modern trade chains, and 85 exclusive brand outlets (EBOs)
SWOT Analysis
Strengths
- • Portfolio of six differentiated BPC brands with complementary value propositions(p.31)
- • Strong flagship brand Mamaearth with established market recognition(p.42)
- • Diversified product portfolio across multiple beauty and personal care segments(p.31)
- • Significant revenue contribution from new product launches demonstrating innovation capability(p.43)
- • Diversified product portfolio with six brands and declining dependence on top 10 products(p.46)
- • Strong brand equity in Mamaearth with growing contribution from newer brands(p.47)
- • Established omnichannel distribution network across online and offline channels(p.46)
- • Significant revenue growth trajectory demonstrating market traction(p.48)
- • Rapid expansion of offline presence through EBOs and modern trade partnerships(p.55)
- • Strong brand portfolio and 'House of Brands' architecture with differentiated value propositions across multiple consumer segments(p.116)
- • High customer retention with majority of Mamaearth revenue from repeat customers in DTC channel(p.117)
- • Strong revenue and volume growth trajectory(p.129)
- • Gross profit margins remain strong and stable above 70%(p.129)
- • Rapid revenue growth and scale achievement(p.190)
- • Strong brand recognition and awards(p.196)
- • Diversified brand portfolio across multiple categories(p.241)
- • Multi-channel distribution reaching offline revenue milestone(p.190)
- • Experienced founding team recognized as industry leaders(p.196)
- • Diverse portfolio of beauty and personal care brands with established market presence(p.249)
- • Significant intangible assets including established brands with indefinite useful lives(p.245)
- • Consolidated operational structure across multiple subsidiaries with acquired brands(p.242)
Weaknesses
- • Complete dependence on third-party manufacturers with concentrated supplier base(p.43)
- • High dependence on flagship Mamaearth brand for revenue generation(p.24)
- • Revenue concentrated in limited product categories creating vulnerability(p.24)
- • History of losses affecting profitability(p.24)
- • Substantial equity dilution through prior share issuances and ESOP grants(p.44)
- • Historical operating losses impacting profitability(p.46)
- • Significant impairment losses from failed acquisition (Momspresso)(p.46)
- • Negative cash flows from operations in FY2023(p.50)
- • High employee attrition rates, particularly due to Momspresso scaling down(p.58)
- • Inadequate internal financial controls with auditor disclaimer(p.47)
- • Unprofitable subsidiaries generating losses(p.51)
- • Company has recorded significant losses in recent periods, particularly FY2023(p.129)
- • Significant impairment loss on goodwill and intangible assets from Momspresso acquisition(p.123)
- • Negative return on net worth reflecting losses and capital constraints(p.128)
- • Heavy dependence on advertising expenses with material portion of revenue committed to marketing(p.116)
- • Significant historical losses and negative equity(p.235)
- • Impairment of goodwill and intangible assets(p.235)
- • Recent year operating losses(p.235)
- • Losses in acquired subsidiaries(p.197)
- • Dependence on related party transactions and agreements(p.208)
- • Significant goodwill impairment on Just4Kids acquisition indicating acquisition underperformance(p.259)
- • Just4Kids business severely underperforming with deteriorating profitability(p.259)
- • Failure to realize acquisition synergies from Just4Kids investment(p.259)
- • Negative accumulated retained earnings indicating cumulative losses(p.271)
- • Substantial provision for slow-moving inventory indicating product obsolescence risk(p.263)
- • Non-controlling interest liability obligations requiring future cash outflows(p.272)
- • Disputed distributor termination with significant contingent liability(p.361)
- • Former employee litigation claiming trade secret misuse and client poaching(p.361)
- • Multiple Legal Metrology compliance notices across states(p.362)
- • Defamation notice from competitor regarding social media statements(p.362)
- • Promoters subject to multiple Legal Metrology notices(p.363)
Opportunities
- • Rapidly expanding BPC market with strong growth trajectory(p.31)
- • High growth potential in online BPC market with significant digital penetration opportunity(p.31)
- • Geographic expansion opportunity across Tier 2+ cities and districts(p.20)
- • New brand and product launch strategy as key growth driver(p.43)
- • Inorganic growth through acquisitions of complementary brands(p.43)
- • Expansion of salon footprint through BBlunt acquisition(p.52)
- • Growth of online commerce market for beauty and fashion in India(p.63)
- • Establishment and growth of new brands in BPC segment(p.47)
- • Strategic acquisitions to supplement market position and capabilities(p.52)
- • Scaling of technology infrastructure to handle growing consumer demand(p.51)
- • Significant expansion of EBO channel with planned capital investment in 132 new EBOs(p.119)
- • Growth through expansion of BBlunt salon channel with planned investment in 20 new salons(p.121)
- • Strategic acquisitions to expand portfolio and geographic reach(p.123)
- • Large advertising investment planned to enhance brand visibility and customer acquisition(p.116)
- • Expansion into new geographic markets(p.241)
- • Growth in offline retail channels(p.190)
- • Expansion of personal care and wellness categories(p.195)
- • Strategic acquisitions and brand integration(p.190)
- • Content platform and influencer marketing expansion(p.190)
- • IPO execution to access public capital markets and strengthen financial position(p.263)
- • Expansion of retail footprint through exclusive brand outlets(p.253)
- • Franchise model development with established agreements generating revenue streams(p.246)
- • Digital and content capabilities through hairdressing salon acquisitions (B:Blunt, Fusion Cosmeceutics)(p.242)
- • Planned capital expansion into salon space and EBOs(p.358)
Threats
- • Rapidly changing consumer preferences and beauty trends difficult to predict(p.42)
- • Supply chain disruption risks from contract manufacturer dependence(p.45)
- • Reputational damage risk from counterfeit products and quality issues(p.42)
- • Regulatory compliance risks across multiple jurisdictions and evolving regulations(p.45)
- • Intensive competition and market saturation risk in BPC industry(p.42)
- • Risk of product recalls damaging reputation and customer confidence(p.42)
- • Intense competition from larger competitors with greater resources(p.50)
- • Counterfeit and lookalike products diluting brand value(p.51)
- • Dependence on third-party logistics and distribution providers(p.56)
- • Vulnerability to cyberattacks and data breaches(p.59)
- • Adverse macroeconomic conditions and consumer discretionary spending slowdown(p.68)
- • Regulatory changes and compliance requirements in digital media and influencer marketing(p.67)
- • Commodity price volatility and inflation impacting manufacturing costs(p.71)
- • Funding requirements and deployment of Net Proceeds not appraised by independent agencies with broad management discretion(p.116)
- • Significant competitive pressure from large established FMCG and BPC industry peers(p.128)
- • Assumption of constant inflation rates may not hold, impacting capex estimates and operations(p.120)
- • Operational metrics subject to inherent measurement challenges(p.130)
- • Regulatory changes to labor laws and codes(p.192)
- • Dependence on third-party manufacturing(p.241)
- • Restrictive covenants limiting dividend payments(p.224)
- • Volatility in preference shares valuation(p.235)
- • Significant reliance on NCCCPS holders for future capital needs and conversion decisions(p.269)
- • Foreign currency exposure through subsidiary in UAE requiring translation management(p.242)
- • High lease obligations with long-term committed rental payments(p.257)
- • Concentration of shareholding with promoters retaining 85% ownership post-bonus(p.268)
- • Intense competitive pressure from larger players with greater resources(p.360)
- • Foreign exchange and currency conversion risks(p.359)
- • Regulatory uncertainties in India affecting operations(p.359)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Varun Alagh | Promoter Selling Shareholder | 34.13% | — |
| Ghazal Alagh | Promoter Selling Shareholder | 3.22% | — |
| Varun Alagh | Promoter/Chairman, Whole-time Director and Chief Executive Officer | 37.35% (on fully diluted basis as Promoter shareholding) | — |
| Ghazal Alagh | Promoter/Whole-time Director and Chief Innovation Officer | 37.35% (as part of Promoter group) | — |
| Varun Alagh | Promoter | 34.13% | [●] |
| Ghazal Alagh | Promoter | 3.22% | [●] |
| Mukesh Alagh | Promoter Group | 0.02% | [●] |
| Jaspal Alagh | Promoter Group | 0.02% | [●] |
| Sunita Sahni | Promoter Group | 0.03% | [●] |
| Varun Alagh | Promoter | — | — |
| Ghazal Alagh | Promoter | — | — |
| Varun Alagh | Promoter | 34.38% | — |
| Ghazal Alagh | Promoter | 3.24% | — |
| Varun Alagh | Promoter | — | — |
| Ghazal Alagh | Promoter | — | — |
Leadership
Varun Alagh · Chief Executive Officer and Promoter
Ghazal Alagh · Chief Innovation Officer and Promoter
Raman Preet Sohi · Chief Financial Officer
Dhanraj Dagar · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Honasa Consumer IPO FAQs
What is the lot size of Honasa Consumer IPO?
The minimum lot size of Honasa Consumer IPO is 46 shares. One lot costs ₹14,904 at the cut-off price.
When does Honasa Consumer IPO open and close?
Honasa Consumer IPO opened for subscription on 31 Oct 2023 and closed on 02 Nov 2023.
What is the listing date of Honasa Consumer IPO?
Honasa Consumer IPO listed on 07 Nov 2023.