Key Points of Mamaearth IPO Delay due to Weak Market Conditions:
- Mamaearth has decided to put its initial public offering (IPO) on hold amidst turbulence in the stock markets worldwide and worries about the financial health of banks.
- Mamaearth is backed by investors such as Sequoia Capital and Belgium’s Sofina and is now in a “wait and watch mode”.
- Honasa Consumer, Mamaearth’s parent company, had filed IPO papers in December, seeking to raise about $200 million to $300 million.
- Reports suggest that Mamaearth is aiming for a valuation of up to $3 billion, but the company’s co-founder Ghazal Alagh had earlier denied these valuation numbers.
- Mamaearth has until December to receive approval for the IPO from the Securities and Exchange Board of India (SEBI) and file its final prospectus.
- Mamaearth still plans to list, but it may reevaluate market conditions and start its marketing process by October if the sentiment improves.
- Mamaearth’s largest investor, Sequoia, would not be selling any shares in the IPO, and the founders would own more than 97% of their shares after the IPO.
Key Points of Mamaearth IPO Delay due to Market Conditions:
Skincare startup Mamaearth has decided to put its initial public offering (IPO) on hold amidst turbulence in the stock markets worldwide and worries about the financial health of banks. According to a recent report, Mamaearth, which is backed by investors such as Sequoia Capital and Belgium’s Sofina, is now in a “wait and watch mode”.
The company’s parent, Honasa Consumer, had filed IPO papers in December, seeking to raise about $200 million to $300 million, through the issuance of new equity and an offer for the sale of some existing shares.
While reports suggest that Mamaearth is aiming for a valuation of up to $3 billion, the company’s co-founder Ghazal Alagh had earlier denied these valuation numbers, stating that the valuation discovery is a process that will take place over time as they get into deeper conversations with the investor community. Mamaearth was last valued at $1.2 billion in January 2022.
The company has until December to receive approval for the IPO from the Securities and Exchange Board of India (SEBI) and file its final prospectus. Although Mamaearth still plans to list, it may reevaluate market conditions and start its marketing process by October if the sentiment improves. Mamaearth CEO Varun Alagh has confirmed that the company’s largest investor, Sequoia, would not be selling any shares in the IPO, and the founders would own more than 97% of their shares after the IPO.
The primary market has seen subdued sentiments in the last few months, with most of the last 10 IPOs listed on stock exchanges still trading below their issue prices.
Furthermore, investors have been unkind to stocks with expensive valuations and those with a poor bottom line. In recent news, Indian apparel retailer Fabindia and jewelry retailer Joyallukkas had to scrap their IPOs due to poor market conditions.
About Mamaearth:
Established in 2016 by Ghazal and Varun Alagh, Mamaearth initially began as a baby-care brand but has diversified its offerings to include personal care items. The brand has gained recognition for its range of all-natural, chemical-free products, including body washes, lotions, hand creams, shampoos, and face masks, catering to men, women, and infants.
For More Latest News Click Here
