Onest IPO: FMCG firm files draft papers with SEBI for issue

Mumbai-based FMCG firm Onest Limited has filed its Draft Red Herring prospectus (DRHP) with capital market regulator SEBI to raise funds through for its initial public offering (IPO).

The Onest Limited IPO, which has a face value of Rs. 10, consists of a fresh issuance for Rs. 77 crore and an offer for sale (OFS) by the promoter and other selling shareholders of up to 3.25 million shares.

The OFS includes up to 2.66 million equity shares from Pawan Kumar Gupta, up to 4.69 lakh equity shares from Glentrade DMCC, up to 62,250 equity shares from Ramesh Girdharilal Lulla, up to 30,000 equity shares from Rahul Porwal, up to 15,000 equity shares from Pankaj Jain, up to 7,500 equity shares from Piyush Dungarpuria, and up to 1,875 equity shares from R Sambhu Kumar.

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In order to meet the company's working capital needs and for other general corporate objectives, the net proceeds from the fresh issue will be used to the extent of ₹60 crore.

The book-running lead managers (BRLM) for the Onest Limited IPO offer are Monarch Networth Capital Lts and Unistone Capital Private Ltd, while Link Intime India Private Ltd is the registrar.

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Onest Limited IPO has reserved not less than 75% of the shares in the public issue for Qualified Institutional Buyers (QIB), not more than 15% for Non Institutional Investors (NII), and not more than 10% of the offer is reserved for Retail Investors.

Onest Ltd focuses primarily on the Fast Moving Consumer Goods (FMCG) and Non Fast Moving Consumer Goods areas. The business operates on an asset-light basis and mostly uses contract manufacturing for the vast majority of its FMCG items.

The consolidated revenue from operations for the fiscal year 2023 increased by 70.94% to ₹184.31 crore from ₹107.82 crore the previous year, mainly owing to sales of goods as a result of the addition of new SKUs to the product portfolio and entrance into new markets. From ₹2.44 crore in the fiscal year 2022 to ₹8.00 crore in the fiscal year 2023, net profit climbed by 227.13%.

Onest Ltd shares are proposed to be listed on BSE and NSE.

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