VC Fund Fireside Ventures likely to sell its 1.9% stake in Mamaearth parent company Honasa; Details here | Mint
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Business News/ Markets / Stock Markets/  VC Fund Fireside Ventures likely to sell its 1.9% stake in Mamaearth parent company Honasa; Details here
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VC Fund Fireside Ventures likely to sell its 1.9% stake in Mamaearth parent company Honasa; Details here

Fireside Ventures Investment Fund, a venture capital fund, is looking to divest 1.9% stake in Honasa Consumer, the parent company of Mamaearth via block deal.

Mamaearth parent company Honasa Consumer LtdPremium
Mamaearth parent company Honasa Consumer Ltd

Fireside Ventures Investment Fund, a venture capital fund, is looking to divest 1.9% stake in Honasa Consumer, the parent company of Mamaearth, through block deals scheduled for Tuesday, according to a report by CNBC Awaaz.

The venture capital firm is presenting 61 lakh shares, representing a 1.9% stake worth 230 crore,  in the personal care products manufacturer.  The designated floor price for the sale has been established at 368.7-384.1 per share, reflecting a potential discount of up to 4% from the prevailing market price. Kotak Securities is the broker to the deal, the reports cited.

The share price of Honasa Consumer was down 3.85% to 384.80 per piece on Monday, against previous close at 400 on Friday last week.

Honasa stock has gained nearly 14% after its listing on the Indian stock market. Since its debut on November 7, the stock has experienced significant volatility. Initially priced at 324 during the initial public offering (IPO), it debuted at a 2% premium, reaching 330 and hitting a high of 340.45 on the intraday basis. However, the initial enthusiasm waned rapidly as the price plummeted to as low as 256 on the BSE within two days.

The stock successfully recovered from its downturn after receiving a positive endorsement from Jefferies India. The brokerage commenced coverage on the stock, assigning it a "buy" rating and setting a price target of 520. Jefferies anticipates that Honasa Consumer will achieve industry-leading growth, projecting a 27% increase over the next three years.

In the previous month, the company unveiled its financial results for the September quarter, revealing a year-on-year revenue surge of 5.5% and a profit growth exceeding 13%.

The company reported a 93.4% year-on-year (YoY) jump in consolidated net profit at 29.4 crore for the second quarter that ended September 30, 2023.

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Published: 04 Dec 2023, 07:46 PM IST
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