Diwali arriving earlier for the investors of Mamaearth as they are set to earn 8-108x returns

This year Diwali is on November 12th however it is all set to arrive earlier on Oct 31st for the early stage investors of Honasa Consumers Pvt Ltd, the parent company of Mamaearth brand as they are pised to earn a return of 8-108x on their investments via its IPO on October 31st.

Although Mamaearth’s profitability is still a concern but it has definitely proved the naysayers who had expressed concern about the ROI for its investors wrong as it is all set to deliver them a return of 8-108x. With the IPO price band of Rs.308-324 per share Mamaearth has turned out to be an extremely lucrative investment avenue for its early stage investors.

For instance, Shilpa Shetty who had invested at Rs.42 per share is all set to pocket 8x returns while the Snapdeal co-founders Kunal Bahl and Rohit Bansal, who invested back in 2018 and will offload 1,193,250 equity shares each, had acquired shares at Rs 3.21 apiece. For them, the return on investment is over 108x, Marico’s Rishabh Harsh Mariwala’s average cost of acquisition was Rs 6.05 per share so he is sitting on 53x return.

The IPO consists of a fresh issue of Rs 365 crore and an offer for sale of up to 41.25 million shares. On the upper price band, the firm will raise around Rs 1,701.44 crore and the firm’s valuation will stand at Rs 10,424.53 crore.

Apart from the aforementioned names, Varun Alagh, Ghazal Alagh, Fireside Ventures Fund, Sofina and Stellaris, are also among the selling shareholders in the OFS.

Honasa tried to go public at the start of this year but it couldn’t materialise and were met with skepticism and harsh criticisms from all corners. Infact many had even expressed their sympathies for Honasa’s early stage investors and even mocked their intelligence and knowledge. Some even believed that those investors will never see a return on their investments. Just barely a year later Varun and Ghazal Alagh are all set to prove their naysayers and critics wrong.

Honasa Consumers Pvt Ltd owns brands like Mamaearth, Aqualogica, The Derma Co. & a chain of beauty salon BBlunt. Their aims is to be a major personal and beauty care conglomerate that operates both in the digital and offline formats.