FIIs, Mutual Funds Increase Stake In Mamaearth In June Quarter

Honasa Distributor Row: Shares Down Nearly 10% To A New All-Time Low

SUMMARY

Foreign institutional investors increased their shareholding in Mamaearth to 13.95% at the end of the June quarter from 12.22% at the end of Q4 FY24

The stake held by mutual funds in Mamaearth increased to 3.56% in Q1 FY25 from 3.13% in Q4 FY24

With Sofina Ventures selling 1% stake in Mamaearth parent Honasa in June, the shareholding of foreign VCs declined to 29.53% at the end of Q1 FY25

Foreign institutional investors (FII) increased their shareholding in D2C beauty brand Mamaearth to 13.95% in the June quarter of FY25, despite widespread selling by these investors in the Indian equity market during this period.

FIIs held a 12.22% stake in Mamaearth parent Honasa at the end of the March quarter of 2024. The total number of FIIs/FPIs (foreign portfolio investors) invested in Honasa also increased to 128 in the June quarter from 107 in the March quarter.

Meanwhile, the stake held by the mutual funds in Mamaearth increased to 3.56% in Q1 FY25 from 3.13% in Q4 FY24, with the total number of mutual fund schemes invested in the company increasing to 16 from 14 in Q4.

However, Invesco India ELSS Tax Saver Fund, the only mutual fund holding more than 1% stake in the company, sold some shares during the June quarter, bringing down its shareholding to 1.41% from 1.56% at the end of Q4 FY24.

On the other hand, alternate investment funds (AIFs) continued to dump their stakeholding in Mamaearth. At the end of the June quarter of FY25, AIFs held a 9.28% stake in the startup as against 10.17% a quarter ago.

It is pertinent to note that Fireside Ventures sold 32.4 Lakh shares of the company, or a 1% stake, in an INR 141.2 Cr bulk deal last month. At the end of the June quarter, Fireside held a 4.28% stake in Mamaearth.

Meanwhile, the holding of foreign VC funds in the company also declined due to Sofina Ventures selling a 1% stake in the company worth INR 141 Cr in June. With Sofina’s stake falling to 5.16% in the June quarter, the total stakeholding of foreign VC funds declined to 29.53% from 30.53% in the March quarter of FY24.

Mamaearth’s promoters hold a stake of over 35% in the startup, which remained unchanged sequentially in the June quarter.

Shares of Mamaearth made their debut on the Indian stock exchanges in November last year and have gained almost 47% since then.

In FY24, the startup posted a full-year profit of INR 110.52 Cr as against a loss of INR 150.96 Cr in the previous fiscal. In Q4, its net profit stood at INR 30.47 Cr on an operating revenue of INR 471.09 Cr.

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