Employees at Mamaearth’s parent company Honasa Consumer Care are expected to sell shares this week for approx ₹150 crore, sources said CNBC-Awaaz, adding that the block deal is likely to be executed at a 5–7% discount to the current market price of ₹477.10.
The broker of the deal is Kotak, and the block is expected to be an ESOP (employee ownership plan) of around 31 lakh shares, CNBC-Awaaz reported Honasa Consumer shares are up more than 47% since listing compared to the ₹324 issue price.
Mamaearth’s share price was locked at a 20% upper circuit on November 23 after the company reported its financial results for the quarter ended September 2023, its first quarterly earnings since the company was listed on the stock exchanges. Mamaearth shares surged 20% to a fresh high ₹422.50 per one on the BSE.
Honasa Consumer, the parent company of digital skincare company Mamaearth, reported a net profit of ₹30 crore in Q2FY24, which has doubled from the same period last year. Its income from operations grew 21% to ₹496 crores.
The revenue of the direct-to-consumer (D2C) unicorn grew 33% in the first half of FY24 when the average growth of the fast-moving consumer goods (FMCG) industry stood at 9%.
Honasa Consumer continues to operate at negative working capital of minus 5 days in H1FY24. The company’s offline distribution increased 47% YoY to 1,65,937 outlets.
Honasa Consumer’s Q2 EBITDA grew 53% YoY to ₹40 crore, which was 25% above Jefferies estimates, helped by a one-time reversal of ESOP charges due to the decline in the Momspresso business. Adjusted for this, EBITDA grew 35% YoY, 11% above estimates. The pace was led by better margin expansion, even as revenue was in line.
EBITDA margin expanded 170 bps YoY to 8.1%, its highest ever. Offshore brokerage Jefferies said Honasa Consumer reported a strong Q2 on both top line and margin.
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Updated: 27 Nov 2023, 13:52 IST