Mamaearth Parent Honasa Shares Tank 4% Post Major Block Deal

Shares of Mamaearth’s parent Honasa Consumer Ltd declined nearly 4% during early trades on Tuesday (June 11) following a large block deal that took place in the stock.

The shares opened at INR 440.60 apiece, as compared to previous close at INR 457.70. The shares were trading at INR 441.35 at 10:00 AM on Tuesday.

According to exchange data, 66.2 Lakh shares, representing 2% equity, were traded in a block deal. The shares exchanged at an average price of INR 439 each.

This transaction is valued at approximately INR 291 Cr. The identities of the buyers and sellers involved in the transaction are currently unknown.

However, as per a CNBC-TV18 report, Fireside Ventures and Sofina Ventures were the likely sellers in the deal.

Fireside Ventures and Sofina Ventures were looking to sell up to a 2% stake in Mamaearth’s parent company through a block deal, targeting earnings of INR 273.2 Cr.

The floor price for the block deal was set at INR 421.3 per share, reflecting an 8% discount to Honasa’s closing price on Monday.

As per the shareholding pattern in the March quarter, Fireside Ventures held a 5.28% stake in the company, while Sofina Ventures held a 6.16% stake.

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 Consumer Ltd, the parent entity of D2C brand Mamaearth, posted a consolidated net profit of INR 30.47 Cr in the fourth quarter of the fiscal year 2023-24 (FY24),

Honasa’s operating revenue zoomed 21% YoY to INR 471.09 Cr in Q4 FY24 from INR 387.8 Cr in the year-ago quarter. But this marked a 3% sequential decline from Q3 FY24’s operational revenue of INR 488.2 Cr.

For the full fiscal year of FY24, the startup’s profits stood at INR 110.52 Cr as against a loss of INR 150.96 Cr it incurred in the previous fiscal. Honasa’s operating revenue for the fiscal also increased 30% to INR 1,919.6 Cr from INR 1,492.7 Cr.