Mamaearth Parent Honasa Shares Drop 6% After INR 1,763 Cr Stake Sale Via Block Deal

Shares of Mamaearth’s parent entity Honasa Consumer Ltd fell over 6% to a low of INR 490 apiece on the NSE during early trading today (September 12) after a 10.9% stake in the company changed hands via a block deal estimated at INR 1,763.3 Cr.

About 3.5 Cr shares of Honasa were traded in the transaction at a floor price of INR 500, a discount of over 4% from the previous close, CNBC-TV18 reported.

However, identities of the buyers and sellers have not been disclosed. Earlier, it was reported that Peak XV Partners, Sequoia Capital, Redwood Trust, Fireside Ventures, Stellaris Ventures and Sofina Ventures planned to divest up to 8.1% stake in Honasa through block deals. The deal size was likely increased to 10.9% today.

As of the quarter ended June 2024, Peak XV Partners held a 18.69% equity stake in Honasa.

The stock hit its record high of INR 547 apiece on the NSE on Tuesday (September 10).

However, it succumbed to selling pressure in the first half of today’s trading session and was trading 5% lower at INR 495.7 apiece on the NSE at 10:43 AM.

The block deal follows an earlier one in June, when Fireside Ventures and Sofina Ventures likely sold a 2% stake in Honasa for INR 291 Cr.

Founded in 2016 by the husband-wife duo of Varun and Ghazal Alagh, Honasa’s product portfolio comprises six beauty and personal care brands which include Mamaearth, The Derma Co., Aqualogica, Ayuga, BBlunt and Dr. Sheth’s.

Honasa posted a 62.9% jump in its profit after tax (PAT) to INR 40.2 Cr in the June quarter (Q1) of the financial year 2024-25 (FY25) from INR 24.7 Cr in the same quarter of previous year.

Mamaearth’s operating revenue witnessed a strong growth of 19.3% on a year-on-year (YoY) basis and 17.3% sequentially to increase to INR 554 Cr in the reported quarter.