Mamaearth Shares Jump 15% To Reach All-Time High, M-Cap Surpasses $2 Bn

Shares of Mamaearth jumped almost 15% during intraday trading today (August 26) to reach an all-time high of INR 528.9 apiece on the BSE amid a significant surge in investor interest and market engagement.

The stock opened trading session at INR 460.2 and was trading 10.4% at 518 apiece on the BSE at 11:11 AM.

More than 1.1 Cr Mamaearth shares changed hands on the BSE and the NSE today, significantly higher than the 20-day average volume of 7.65 Lakh shares.

While the stock hit a new lifetime high, the company’s valuation exceeded $2 Bn. At the time of publishing this article, Mamaearth was valued at INR 16,803.95 Cr (about $2.004 Bn)

The buying interest in the stock rose after the Chandigarh bench of the National Company Law Tribunal (NCLT) passed an order pertaining to the scheme of amalgamation between Honasa Consumer Limited, the parent company of Mamaearth, and its two subsidiaries — Just4Kids Services Private Limited and Fusion Cosmeceutics Private Limited.

In its order dated August 22, 2024, the bench of Justices xx asked Just4Kids to submit the correct Memorandum of Association after flagging a discrepancy in its registered office data. The order noted that while as per the Memorandum of Association submitted by Just4Kids showed New Delhi has its headquarter, its master data showed the registered office is located in Gurugram.

While Just4Kids said that it had no debenture holders or creditors as of April 22, 2024, the tribunal found that the company had non-current liabilities of INR 195.93 Lakh and current liabilities of INR 545.43 Lakh. Accordingly, the NCLT has asked Just4Kids to file its audited provisional balance sheet with the list of its shareholders, debenture holders and creditors.

It is pertinent to note that Honasa earlier this year secured the approval from its board for its merger with Just4Kids and Fusion Cosmeceutics. However, the merger plan still awaits NCLT’s green light.

Fusion Cosmeceutics operates the premium skincare brand Dr Sheth’s. In 2022, Mamaearth acquired a majority stake in Dr Sheth’s and more recently acquired the remaining 34.51% stake for INR 30 Cr.

On the other hand, Just4Kids is the parent company of Momspresso, offering parenting tips and pregnancy advice to mothers across languages, including English, Hindi, and eight other regional languages.

Momspresso was Mamaearth’s first acquisition for INR 167.9 Cr. Ahead of its IPO, Momspresso’s website was pulled down and is still remains inaccessible.

Honasa Consumer posted a profit after tax (PAT) of INR 40.2 Cr in the June quarter (Q1) of the financial year 2024-25 (FY25), up almost 63% from INR 24.7 Cr in the same quarter of previous year on the back of surge in the sales of its beauty products.

Revenue from operations during the quarter under review  jumped 19.3% on a year-on-year (YoY) basis and 17.3% sequentially to increase to INR 554 Cr.

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