Honasa Consumer Ltd, the owner of popular FMCG brands Mamaearth and The Derma Co, along with healthcare tech firm Indegene Ltd, have received the much-awaited green light from the markets regulator, Securities and Exchange Board of India (SEBI), to proceed with their Initial Public Offerings (IPOs).
Joining the league of companies set to hit the IPO market is engineering, procurement, and construction (EPC) firm Vishnu Prakash R Punglia Ltd, which has also received the regulatory nod for its initial share sale.
The initial IPO filings for Honasa Consumer and Indegene were submitted to SEBI back in December 2022, while Vishnu Prakash R Punglia Ltd’s filing was made in April 2023. The latest update reveals that SEBI provided its observations letter during July 25-28, effectively granting these companies the go-ahead to launch their public offerings.
In SEBI’s parlance, receiving observations means that the companies can now move forward with their IPO and FPO (Follow-on-Public Offer).
Delving into the proposed IPO details, Honasa Consumer’s offering will consist of a fresh issue of equity shares valued at up to Rs 400 crore, along with an Offer For Sale (OFS) of up to 4,68,19,635 shares by promoters and existing shareholders.
The selling shareholders in the OFS will include prominent names such as the company’s promoters and co-founders Varun Alagh and Ghazal Alagh, Bollywood actor Shilpa Shetty Kundra, Rohit Kumar Bansal, Sofina Ventures, and Kunal Bahl.
On the other hand, Indegene’s IPO will comprise a fresh issue of equity shares worth up to Rs 950 crore, along with an OFS of up to 3.63 crore equity shares by existing investors, as stated in the Draft Red Herring Prospectus (DRHP).
Among the selling shareholders in the OFS, we have individual investors such as Manish Gupta, Rajesh Bhaskaran Nair, and Anita Nair, along with existing investors like Carlyle, Brighton Park Capital, and the Nadathur Family Office.
Market insiders estimate that the healthcare tech firm, Indegene, focused on the global life sciences industry, is expected to raise a substantial sum of Rs 3,200 crore through its IPO.
As for the funds raised through the fresh issue, Honasa Consumer plans to employ them for multiple purposes, including debt repayment, capital expenditure requirements, payment of deferred consideration for a past acquisition, funding inorganic growth, and other general corporate needs.
Jodhpur-based Vishnu Prakash R Punglia Ltd’s IPO comprises a fresh issue of 3.12 crore equity shares with no OFS component.
According to the market sources, the anticipated size of Vishnu Prakash R Punglia Ltd’s IPO is around Rs 300 crore.
The funds raised from the fresh issuance will be allocated towards purchasing capital equipment, funding the company’s working capital requirements, and meeting various general corporate purposes.
Upon successful completion of their IPOs, the shares of all three companies, Honasa Consumer, Indegene, and Vishnu Prakash R Punglia Ltd, will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
