Fireside Ventures, a capital fund and the initial investor in Mamaearth during the seed round, executed a block deal on Tuesday, 5 December, selling 61 lakh shares of Honasa Consumer, the parent company of Mamaearth, which recently debuted on the stock exchange. As a result of this deal, the stock prices fell to Rs 367.15, reflecting a 4.41 per cent loss on the National Stock Exchange (NSE).
Compared to the closing price on Wednesday, this transaction represents a 1.9 per cent stake in the company valued at Rs 230 crore. The floor price for the deal is set with a 4 per cent discount, ranging from Rs 368 to Rs 384, with Kotak Securities serving as the broker.
It is noteworthy that Honasa Consumer presented robust financial figures in its first-half (H1) report ending on 30 September 2023. The positive results contributed to a surge in stock prices, reaching as high as a 20 per cent increase, triggering the upper circuit on 23 November.
The firm reported H1 revenue of Rs 961 crore from operations, marking a 33 per cent year-on-year (YoY) increase, while the like-for-like growth stood at 36 per cent.
In the second quarter of FY24, the company’s revenue rose to Rs 496 crore, reflecting a 21 per cent YoY increase attributed to volume growth. During this period, EBITDA increased by 53 per cent to Rs 40 crore, and PAT stood at Rs 29 crore, marking a substantial 94 per cent YoY growth.
Honasa Consumer had a flat debut on the stock market, opening at Rs 330 per share compared to the Rs 324 IPO issue price. Since then, the stock has yielded a commendable 18.5 per cent in returns.
