Netizens react to Mamaearth IPO, cite steep valuation and financials
1 min read 03 Jan 2023, 04:42 PM ISTHonasa Consumer Private Ltd, which operates direct-to-consumer brands Mamaearth and The Derma Co, is looking to raise around ₹2,900 crore through an initial public offering (IPO)
PremiumThe internet is buzzed with new initial public offer(IPO) of Honasa Consumer Pvt Ltd which operates brands like Mamaearth and The Derma Co. The reason is the steep valuation at which the company is raising funds from public.
Honasa Consumer Private Ltd, which operates direct-to-consumer brands Mamaearth and The Derma Co, is looking to raise around ₹2,900 crore through an initial public offering (IPO).
Honasa Consumer plans to raise funds through offer of equity shares (face value Rs10 each) through the public issue. Mamaearth IPO comprises of fresh issue of equity shares aggregating up to ₹400 crore and offer for sale (OFS) of up to 46,819,635 equity share by selling shareholders.
"If you applied for IPO and lost money with PAYTM, DELHIVERY, CARTRADE, ZOMATO & FINO PAYMENT … One should learn a lesson atleast for the MAMAEARTH IPO… Ridiculous pricing, seems to be only interest in providing an exit for early investors," said one user.
"#Mamaearth 400 cr IPO
Revenue: H1FY23: ₹723 Cr FY22: ₹943 Cr
Profit/Loss After tax :H1FY23: ₹4 Cr , FY22: ₹14 Cr
Seeking Valuation: 24000 cr
Zero manufacturing unit ! Sab milke "mama" bana rahe !! 75 lacs investment of Shilpa Shetty is 80cr if the IPO hits it's target," said another user.
"Seeing how quickly and desperately founders and early investors want to offload their stake and rotate by investing in another small start-up, expecting the same story to repeat tells us the quality of Indian startups," said another Twitter user.
'Earlier: Buying Eicher Motor shares was beneficial than buying Royal Enfield! Today: Buy mama-earth products rather buying its shares. 1000x valuation crazy!," remarked another user.
