Mamaearth's current valuation reflects consensus, says CEO Varun Alagh
₹1,701 crore, with the issue set to open on 31 October. Claiming to be the fastest company in the category to hit revenues of ₹1,000 crore, it plans to earmark ₹365 crore primarily to amplify its offline presence, explore inorganic growth, and enhance its research and development efforts. With a valuation pegged at $1.2 billion, or ₹10,000 crore at ₹324 per share, Honasa has garnered significant attention and critique on social media regarding its IPO strategies and red herring prospectus.
Varun Alagh, co-founder and chief executive of the company, in an interview talks about launching an initial public offering (IPO) amid a muted market, its losses in FY23, and valuation. Edited excerpts: We are in this for the long haul, have been doing this for a decade. So, in that sense, the IPO is just another event.
Market conditions fluctuate regularly, and it isn't about timing but about creating value. We initiated this process in December 2022 and followed all necessary approvals. For companies with a clear path to value generation, anytime is ideal for an IPO.
Our primary round share price was ₹262 per share. Now, we're looking at an approximate 24% increase with ₹307-324 apiece. While we've seen growth, valuation is a collective exercise involving multiple stakeholders.
This current valuation reflects a consensus that offers the most interest and value. Regarding the primary fundraise, the Securities and Exchange Board of India (Sebi) made a note on our draft red herring prospectus (DRHP) concerning the purpose for which we were raising funds, specifically related to the security for our upcoming stores. Since this security is refundable, Sebi advised us to omit it, and we found their observation to be valid.
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