Mamaearth IPO Opens for Subscription Today : Should You Invest?

Understanding the Mamaearth IPO

The parent company of Mamaearth, Honasa Consumer, is set to launch its IPO on October 31, aiming to raise ₹1,701 crore. What do analysts think about this offering? Let's dive into the details.

IPO Details and Concerns

The Mamaearth IPO includes a fresh equity issue of ₹365 crore and an offer for sale. Founders and investors will offload partial stakes, with a price band of ₹308-324 per share. However, there are concerns about the company's reliance on third-party manufacturers and its past losses.

Company Profile and Performance

Honasa Consumer, the largest digital-first beauty and personal care company in India, boasts a portfolio of brands, including Mamaearth. Despite its rapid growth, the company posted a net loss in the fiscal year 2023.

Important Dates

The basis of IPO share allotment will be finalized by November 7, and trading on the BSE and NSE is set to begin on November 10.

The Mamaearth IPO – A Closer Look

Honasa Consumer, the parent company of Mamaearth, is gearing up for its IPO, hoping to raise ₹1,701 crore. However, the offering has garnered mixed opinions from analysts.

The IPO is a combination of a fresh equity issue and an offer for sale, with concerns surrounding the company's reliance on third-party manufacturers and past losses. Despite its remarkable growth, Honasa Consumer reported a net loss in fiscal year 2023.

Mamaearth IPO Details and Concerns

The Mamaearth IPO comprises a fresh equity issue of ₹365 crore and an offer for sale. Founders and investors will partially divest their stakes, with a price band of ₹308-324 per share. Nevertheless, there are concerns about the company's reliance on third-party manufacturers and its history of losses.

• Analysts Mixed on Mamaearth IPO, Some Advise Investors to Subscribe with Medium to Long-Term View
• Mamaearth IPO Appears to Be Overvalued in Current Market Conditions
• Company Has Experienced Negative Cash Flows from Operating, Investing and Financing Activities in the Past
• Subsidiaries That Company Has Acquired in the Past Have Incurred Losses
• Company Does Not Manufacture Its Products and Relies on Third Parties for That

Company Profile and Performance

Honasa Consumer, touted as India's largest digital-first beauty and personal care company, owns a range of brands, including Mamaearth. Despite rapid growth, the company posted a net loss in the fiscal year 2023.

Key Dates to Remember

Investors should keep an eye on key dates, as the basis of IPO share allotment will be finalized by November 7, and trading is expected to commence on November 10.

Relevant and Latest Facts about Mamaearth :

• Mamaearth is the largest digital-first beauty and personal care (BPC) company in India in terms of revenue from operations for the financial year 2023.

• The company's portfolio of brands comprises household favorites like Mamaearth, The Derma Co., Aqualogica, and Ayuga.

• Mamaearth brand has emerged as the fastest growing BPC brand in India to reach an annual revenue of ₹1,000 crore within six years.

• The company's revenue has grown at a CAGR of 80% over FY21-23 with a volume growth of 102.28%.

• The company has an adjusted EBITDA of 3.4% as on FY23 with negative working capital on account of asset light model that enables them to invest more on marketing, technology and product innovation.

Overall, the Mamaearth IPO is a mixed bag. The company has strong growth potential, but it is also loss-making and overvalued in the current market conditions. Investors should carefully consider the risks and opportunities before subscribing to the IPO.