Honasa Consumer block deal: 62.8 lakh shares change hands; Fireside Ventures likely seller

Shares of Honasa Consumer, the parent company of Mamaearth, were up over 3 per cent in the early trade on Tuesday, December 5, but later pared gains after 62.8 lakh shares, or a 2 per cent equity, changed hands in multiple block deals during the market opening. Zee Business Research had earlier reported that a big block deal was possible in Honasa Consumer, and Fireside Ventures was expected to sell the stake.

At around 10:02 a.m., shares of Honasa Consumer were down 0.96 per cent, or Rs 3.7 at Rs 379 apiece on BSE. The market capitalisation of the company stood at Rs 12,741.17 crore. The stock closed 4.25 per cent or Rs 16.3 lower at Rs 367.2 apiece. 

Honasa Consumer's initial public offering (IPO) was launched on October 31, 2023, and the subscription window closed on November 2, 2023. Shares of the company were listed on November 7. The offer had a price range of Rs 308–324 per share.

Mamaearth made a muted debut on the bourses at Rs 324 apiece on BSE and Rs 330 on NSE. Since its debut, the stock has gained over 17 per cent from its listing price of Rs 324.

Recently, the company posted a good set of numbers for the September quarter. Revenue at the company jumped 21 per cent year-on-year (YoY) and came in at Rs 496 crore. Earnings before interest, tax, depreciation, and amortisation (EBITDA) also surged 53 per cent YoY to Rs 40 crore.

Meanwhile, the profit after tax (PAT) logged a massive 94 per cent YoY. Margins, a key to measure profitability, also soared and stood at 8.1 per cent versus 6.4 per cent registered in the same period last year.

Honasa Consumer grew 3.8x compared to the FMCG market in H1 (Honasa Consumer growth: 33 per cent ) FMCG companies median YoY growth: 9 per cent), noted the company's press release. The company has, by and large, logged volume-led sales growth, which has been 27 per cent during the quarter under review.

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