Fireside Ventures Investment Fund is reportedly set to divest a portion of its equity in Honasa Consumer, the parent company of Mamaearth, through block deals on Tuesday.
The venture capital firm is putting up 61 lakh shares, equivalent to a 1.9% stake, for sale in the personal care products manufacturer. The anticipated value of the deal is around INR 230 crore.
The sale’s floor price is established at INR 368.7-384.1 per share, reflecting a potential discount of up to 4% from the present market price.
On Monday, shares of Honasa Consumer ended 4% lower on the National Stock Exchange at INR 384.10.
According to the reports, Kotak Securities serves as the broker for the transaction.
Since its listing on November 7, the stock has experienced a volatile journey. Opening at a 2% premium of INR 330 compared to the initial public offering (IPO) issue price of INR 324, it reached a peak of INR 340.45 on the intraday basis. However, the initial enthusiasm waned quickly, and the price dropped to as low as INR 256 on the BSE within 2 days.
Following a bullish call by Jefferies India, the stock managed to recoup its losses well. The brokerage initiated coverage on the stock with a “buy” rating and a price target of INR 520, stating that Honasa Consumer is expected to report industry-leading growth of 27% over the next 3 years.
Last month, the company reported its earnings for the September quarter, indicating a 5.5% year-on-year growth in revenue and a profit increase of over 13%.
