Honasa CEO Varun Alagh Buys Shares Worth INR 50 Cr

SUMMARY

Cofounder and promoter Varun Alagh increased stake by 0.57% for INR 50 Cr

The cofounder has bought over 18.51 Lakh additional shares in Honasa through a block deal, with each share priced at INR 270

The aggregate shareholding of the promoter and promoter group now stands at 11.56 Cr shares

Honasa Consumer’s cofounder and CEO Varun Alagh has increased his stake in the beauty and personal care (BPC) major by purchasing shares worth INR 50 Cr from the company’s investor Fireside Ventures in a block deal on Monday. The deal, which saw 18.52 Lakh shares or 0.57% stake change hands, valued each share of the company at INR 270, a slight 2.4% discount from closing price of INR 276.75.

Following the block deal, Alagh’s shareholding in the company now stands at 10.55 Cr shares, representing 32.45% of the company’s equity, Honasa announced in an exchange filing. The aggregate shareholding of the promoter and promoter group now stands at 11.56 Cr shares, or 35.54% of the company’s total share capital.

Meanwhile, Fireside, via its holding entity Fireside Ventures Investment Fund I, held 62.91 Lakh shares or 1.93% stake in the company at the end of the September quarter. Important to mention that Fireside Ventures is one of the first investors of the Mamaearth parent, backing the company in its seed round. The VC firm has been cutting its stake in the company since its IPO in October 2023, cutting its stake to below 1% now from about 10.5% at the time of the company’s IPO.

The secondary deal comes at a time when the Mamaearth parent is trying to diversify away from its flagship brand. It recently made a foray into men’s personal care by acquiring D2C brand Reginald Men’s parent, BTM Ventures, for INR 195 Cr.

Earlier this year, it also signed an agreement to secure a 25% stake in Fang Oral Care for INR 10 Cr. The company also made an entry into the prestige skincare segment with the launch of Luminve in the previous quarter.

These investments indicate a focus on portfolio expansion, even as its younger brands continue to steal the spotlight from MamaEarth. It noted in an earnings call earlier this year that portfolio brands like The Derma Co, BBlunt, Aqualogica, Dr Sheth’s and Staze Beauty are now the primary growth focus for the company.

On the financial front, the house of brands posted a consolidated net profit of INR 39.2 Cr in Q2 FY26 as against a loss of INR 18.6 Cr in the year-ago quarter. Operating revenue also increased 17% YoY to INR 538.1 Cr from INR 461.8 Cr in Q2 FY25.