Mamaearth eyes ₹2K cr pre-Diwali listing

Honasa Consumer Pvt. Ltd, which operates direct-to-consumer brands Mamaearth and Derma Co., is targeting an initial public offering (IPO)before Diwali this year that could value the company as much as ₹10,000 crore-₹12,000 crore ($1.2 billion-$1.4 billion).

- Sneha Shah & Ranjani Raghavan

The company is lining up investors for its anchor book for which it is raising ₹800 crore to ₹900 crore from institutional investors, said three people with knowledge of the development, asking to be anonymous.

"The book-building process has started around this valuation, and there is considerable interest from investors for that value," the first person cited above said. Capital Group and Fidelity International are among the investors interested in the anchor book. "There will also be a lot of domestic investors," the second person added. Diwali begins on 10 November.

For Mamaearth, this valuation is a climb-down of sorts, as it was valued at $1.2 billion in January 2022. It entered the coveted unicorn club when it then raised $52 million.