Honasa Consumer Ltd IPO Timeline

Honasa Consumer Ltd IPO opens on 31-Oct-2023, and closes on 02-Nov-2023. The Honasa Consumer Ltd IPO bid date is from 31-Oct-2023 to 02-Nov-2023. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.

Event Date
Honasa Consumer Ltd IPO Opening Date 31-Oct-2023
Honasa Consumer Ltd IPO Closing Date 02-Nov-2023
Basis of Allotment 03-Nov-2023
Initiation of Refunds 03-Nov-2023
Credit of Shares to Demat 06-Nov-2023
Honasa Consumer Ltd IPO Listing Date 07-Nov-2023

Honasa Consumer Ltd IPO Lot Size

Honasa Consumer Ltd IPO lot size is 46 shares. A retail-individual investor can apply for up to 13 lots (598 shares or 193752).

Application Lots Shares Amount
Minimum 1 46 ₹14904
Maximum 13 598 ₹193752

Honasa Consumer Ltd IPO Details

Honasa Consumer Ltd IPO Date 31-Oct-2023 to 02-Nov-2023
Honasa Consumer Ltd IPO Face Value Shares of ₹10 per share
Honasa Consumer Ltd IPO Price ₹308 to ₹324 per share
Honasa Consumer Ltd IPO Lot Size 46
Issue Size Shares of ₹10 (aggregating up to ₹1701.44 Cr)
Fresh Issue Shares of ₹10 (aggregating up to ₹365 Cr)
Offer for Sale Shares of ₹10 (aggregating up to ₹1336.44 Cr)
Issue Type Book Built Portion
Listing At BSE, NSE
QIB Shares Offered Not more than 15744820
Retail Shares Offered Not less than 5248272
NII (HNI) Shares Offered Not less than 7872409
Company Promoters Varun Alagh, Ghazal Alagh.

Objects of the Issue

The company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

  • 1 Advertisement Expenses towards Enchancing the Awareness and Visibility of the Brands
  • 2 Capital Expenditure to be incurred by the Company for setting up New EBOs
  • 3 Investmen in the Subsidiary,BBlunt for setting up new Salons
  • 4 General Corporate Purposes & Unidentified Inorganic Acquisition

Company Financials

Honasa Consumer Ltd Financial Information (Restated)

Period Ended Total Assets Total Revenue Profit After Tax
03-2023 929.06 1415.24 -120.56
03-2022 951.94 952.44 19.87
03-2021 302.64 472.10 -1332.22
Amount in ₹ Crore
  • Brand building capabilities and repeatable playbooks.
  • Customer centric product innovation.
  • Digital-first omnichannel distribution.
  • Data driven contextualised marketing.
  • Ability to drive growth and profitability in a capital efficient manner.
  • Founder led company with a strong professional management.
  • If the company is fail to identify and effectively respond to changing consumer preferences and spending patterns or changing beauty and personal care trends in a timely manner, the demand for its products could decrease, causing the company business, results of operations, financial condition and cash flows to be adversely affected.
  • The company brands and reputation are critical to the success of its business and may be adversely affected due to various reasons, which could have an adverse effect on the company business, financial condition, cash flows and results of operations.
  • The launch of new brands or products that prove to be unsuccessful could affect its growth plans which could adversely affect the company business, financial condition, cash flows and results of operations.
  • The compan is derives a significant amount of revenue from a limited number of products. Any decrease in the sales of its key products will adversely affect the company business, cash flows, financial condition and results of operations.
  • The company dependence on third-party manufacturers for all its products subjects the compnay to risks, which, if realized, could adversely affect its business, results of operations, cash flows and financial condition.
  • Its may be subject to unfair competitive or trade practices, which may reduce the company sales and harm its brands, adversely affecting its business, financial condition, cash flows and results of operations.
  • Product liability claims and product recalls could harm its reputation, business, financial condition, cash flows and results of operations.
  • If the company is unable to identify consumer demand accurately and maintain an optimal level of inventory, its business, results of operations, cash flows and financial condition may be adversely affected.
  • Reliance on celebrities and social media influencers as part of its marketing strategy may adversely affect the company business and demand for its services.
  • The company relies on its relationships with certain marketplaces and web traffic drivers for sales through the company online channel.
  • The company inability to effectively manage or expand its offline sales network may have an adverse effect on the company business, results of operations, cash flows and financial condition.
  • The company is dependent on several third party service providers to sell or distribute its products to consumer, and on third party technology providers for certain aspects of its operations. Any disruptions or inefficiencies in these operations may adversely affect its business, financial condition, cash flows and results of operations.
  • The company historical performance is not indicative of its future growth or financial results and its may not be able to sustain the company historical growth rates.
  • The company technology infrastructure and the technology infrastructure of its third-party providers are susceptible to security breaches and cyberattacks.
  • The Company has issued Equity Shares during the preceding one year at a price that may be below the Offer Price and grants of stock options under its ESOP 2018 and ESOP 2021 may result in a charge to the company profit and loss account and, to that extent, reduce its profitability and adversely affect the company financial condition.
  • The company face intense competition which may lead to a reduction in its market share, cause it to increase the company expenditure on marketing and promotion as well as cause it to offer discounts, which may result in an adverse effect on the company business and a decline in its profitability.
  • The company may not be able to adequately protect its intellectual property, which may result in the inability to prevent its competitors from developing, using or commercializing products that are functionally equivalent or similar to its products.
  • The Auditor's report on internal financial controls issued on its standalone financial statements for the Financial Year 2020 contains a disclaimer of opinion relating to the Auditors' inability to obtain appropriate audit evidence to provide a basis for opinion on adequate internal financial controls.
  • The success of its business depends substantially on its management team and operational workforce. its inability to retain them could adversely affect the company businesses.
  • The company may not be able to successfully identify and conclude acquisitions, or manage the integration of or harness synergies from acquired businesses, or the performance of such acquired businesses may be below its expectations, any of which may adversely affect the company business, results of operations, cash flows and financial condition.
  • The company has experienced negative cash flows from operating, investing and financing activities in the past.
  • The locations of its EBOs may become unattractive, and suitable new locations may not be available for a reasonable price. In addition, the company is exposed to all of the risks associated with leasing real estate and any adverse developments could affect its business, results of operations, cash flows and financial condition.
  • The company is subject to payment-related risks, including risks associated with cash on delivery and payment processing risks.
  • Any international expansion efforts may expose it to complex management, legal, tax and economic risks, which could adversely affect the company business, financial condition, cash flows and results of operations.
  • There is outstanding litigation pending against the company and its Subsidiaries which, if determined adversely, could affect its business, results of operations, cash flows and financial condition.
  • The audit reports on its Special Purpose Ind AS standalone financial statements as at and for the Financial Years 2021 and 2020 contain emphasis of matter paragraphs.
  • In this Draft Red Herring Prospectus, the company has compared consolidated financial information as of and for the year ended March 31, 2022 with its standalone financial information as of and for the year ended March 31, 2021 and for the year ended March 31, 2020. These periods are not comparable to each other.
  • The company relies on its information technology systems in managing the company supply chain, logistics and other integral parts of its business. Any failure in the company information technology systems could adversely affect its financial condition, cash flows and results of operations.
  • The company warehousing operations are being conducted on premises that have been taken on lease. Any difficulty in seeking renewal or extension of such lease terms may cause disruption in its operations.
  • The company's business depends on its ability to maintain and scale its technology. Any interruptions or delays in service on the company websites or mobile applications or any undetected errors or design faults could result in limited capacity, reduced demand, processing delays, and loss of consumers, suppliers or sellers.
  • Environmental, health, employee and safety laws and regulations may expose it to liability and result in an increase of the company costs and a decrease in its profits.
  • The company's business depends upon the user behavior, growth of online commerce industry in India and continued acceptance of digital platforms.
  • The company appoint contract labor for carrying out certain of its operations and its may be held responsible for paying the wages of such workers if the independent contractors through whom such workers are hired default on their obligations, and such obligations could have an adverse effect on its cash flows and results of operations.
  • The company culture and values have been critical to its success and if the company cannot maintain this culture and its values as the company grow, its business and reputation could be adversely affected.
  • The company may not be successful in implementing its business strategies.
  • The company has recorded losses in the past. Any losses in the future may adversely impact its business and the value of the Equity Shares.
  • The company has contingent liabilities and its financial condition could be adversely affected if these contingent liabilities materialize.
  • The company may requires additional financing in the form of debt or equity to meet its business requirements.
  • The company may not be sufficiently protected or insured for certain losses that its may incur or claims that the company may face against it.
  • The company requires certain approvals and licenses in the ordinary course of business, and the failure to obtain or retain them in a timely manner all may adversely affect its operations.
  • The company online marketing listings or reviews may constitute internet advertisement, which subjects it to laws, rules and regulations applicable to advertising.
  • The company track certain operational and key business metrics with internal systems and tools. Certain of its operational metrics are subject to inherent challenges in measurement which may adversely affect its business and reputation.
  • The company does not own its Registered and Corporate Offices.
  • The company Promoters will continue to retain significant shareholding in its after this Offer, which will allow them to exercise significant influence over the company and any substantial change in its Promoters' shareholding may have an impact on the trading price of its Equity Shares which could have an adverse effect on the company business, financial condition, results of operations and cash flows.
  • The company Promoters, Directors and Key Management Personnel may have interests other than reimbursement of expenses incurred and receipt of remuneration or benefits from the Company. Certain of its Promoters and Directors may have interest in entities, which are in businesses similar to its and this may result in conflict of interest with the company.
  • This Draft Red Herring Prospectus contains information from third parties, including an industry report prepared by an independent third-party research agency, RedSeer Management Consulting Private Limited (RedSeer), which the company has commissioned and paid for purposes of confirming its understanding of the industry exclusively in connection with the Offer.
  • The company has entered into, and will continue to enter into related party transactions. The company cannot assure you that such transactions, individuals or in the aggregate, will not have an adverse effect on its business, financial condition, cash flows and results of operations.
  • Expand distribution and brand awareness
  • Incubate or acquire new engines of growth
  • Strengthen business efficiency drivers

Honasa Consumer Ltd IPO Promoter Holding

Pre Issue Share Holding 37.34%
Post Issue Share Holding 35.02%

Honasa Consumer Ltd IPO Subscription Status (Bidding Detail)

The Honasa Consumer Ltd IPO is subscribed 7.61 times on Nov 02, 2023 05:00:00 PM. The public issue subscribed 1.35 times in the retail category, 11.5 times in the QIB category, and 4.02 times in the NII category. Check Day by Day Subscription Details (Live Status)

Category QIB NII Retail Employee Total
Subscription (times) 11.5 4.02 1.35 4.87 7.61

Honasa Consumer Ltd IPO Prospectus

Honasa Consumer Ltd IPO Listing Date

Listing Date 07 Nov 23
BSE Script 544014
NSE Symbol HONASA
Listing In BSE, NSE
ISIN INE0J5401028
IPO Price ₹324
Face Value ₹10

Honasa Consumer Ltd IPO Registrar

KFin Techologies Ltd

Phone: +91 40 6716 2222
Email: hcl.ipo@kfintech.com
Website: www.kfintech.com

Honasa Consumer Ltd IPO Lead Manager(s)

  1. Kotak Mahindra Capital Company Ltd
  2. Citigroup Global Markets India Pvt Ltd
  3. J.M.Financial Ltd
  4. J.P.Morgan India Pvt Ltd

FAQs on Honasa Consumer Ltd IPO

Honasa Consumer Ltd IPO, which opens for subscription from 31-Oct-2023 to 02-Nov-2023 has an issue size of ₹1701.44 crore. The issue type is book building issue.

In case of pre-apply, your IPO order will be placed on the Exchange as soon as the official bidding for Honasa Consumer Ltd IPO begins. You will receive a UPI request within 24 hours after the bidding period opens.

Honasa Consumer Ltd IPO Opens for subscription from 31-Oct-2023 to 02-Nov-2023.

The lot size of Honasa Consumer Ltd is 46 shares. Retail investors can subscribe to minimum 1 lot and maximum 13 lots. The minimum and maximum application value is ₹14904 and ₹193752 respectively.

Allotment date for Honasa Consumer Ltd is 03-Nov-2023 and refund of application amount (in case allotment is not received) will begin from 03-Nov-2023. If your allotment goes through, then shares will be credited in your Demat account by 06-Nov-2023.

The registrar for Honasa Consumer Ltd IPO is KFin Techologies Ltd . You can check your IPO allotment status on the registrar's website.

The shares of Honasa Consumer Ltd are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

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