Honasa intends to use the capital raised through net proceeds from the fresh issue towards advertisement and capital expenses, investment in its subsidiary, and meet general corporate purposes. Of the ₹365 crore raised from fresh issue, it proposes to invest ₹186 crore to meet advertisement expenses towards enhancing the awareness and visibility of its brands; ₹34.23 crore to incur capital expenditure for setting up new EBOs; and ₹27.52 crore for investment in its subsidiary, Bhabani Blunt Hairdressing for setting up new salons. A part of the fund will be also used to meet general corporate purposes and unidentified inorganic acquisitions.

Ahead of the public offering, Honasa raised ₹765.20 crore from anchor investors on October 30, 2023. It allotted 2.36 equity shares to 49 anchor investors at the upper price band, which saw participation from foreign as well as domestic investors, with foreign portfolio investors (FPIs) allocated nearly 54.7% of anchor allocation, and the remaining to domestic investors.

Founded in 2016, Honasa Consumer is the largest digital-first beauty and personal care (BPC) company in India in terms of revenue from operations for the financial year 2023, as per RedSeer report. Since launching flagship toxin-free skincare brand Mamaearth in 2016, Honasa has added five new brands to its portfolio, namely The Derma Co., Aqualogica, Ayuga, BBlunt and Dr. Sheth’s, and has built a ‘House of Brands’ architecture. As of September 30, 2022, Honasa Consumer portfolio of brands with differentiated value propositions includes products in the baby care, face care, body care, hair care, colour cosmetics, and fragrances segments.

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Honasa Consumer listing

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