The initial public offering (IPO) of Honasa Consumer - which operates brands like Mamaearth, Aqualogica, and the Derma Co., - is set to open on October 31. The IPO has set its price band between ₹308-324 per share.

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The company's key financials:

Here are the key questions answered on Mamaearth-owner’s IPO:

First Published:Oct 26, 2023 8:47 PM IST

IPO KYC | Honasa Consumer - key questions answered on Mamaearth parent’s initial public offering

When was Mamaearth launched?

Mamaearth was founded by Varun Alagh and Ghazal Alagh in 2016.

What does Mamaearth do?

The company operates in the space of beauty and personal care.

The brand offers beauty, skin, hair, and baby care products.

Who are the major investors?

Institutional investors: Fireside Ventures, Peak XV Partners, Stellaris Venture Partners.

Angel investors: Shilpa Shetty Kundra and 6 others.

Other investors: Rishabh Harsh Mariwala, Kunal Bahl, Rohit Kumar Bansal, Sofina Ventures, Evolvence Sequoia Capital[.

What is Mamaearth's IPO issue size and price band?

The issue size of the Mamaearth IPO is ₹1701.44 crore, while the price band has been set at ₹308-324.

The market cap of the company is ₹10,424 crore.

What are the top risks investors need to factor in?

The company has generated losses in two out of the last four years.

The operating margins are in single digits due to high A&P spends.

The company outsources the manufacturing of all products to third-party manufacturers, primarily under non-exclusive contracts.

The space the company operates in is highly competitive.

Major competitors are traditional FMCG players like HUL, Dabur, Marico and GCPL.