Honasa Consumer, the parent company of Mamaearth, witnessed a staggering 20% surge in its shares following a remarkable 94% increase in year-on-year net profit during the quarter ending September 2023. The Mumbai-based direct-to-consumer brand encompasses Mamaearth, Aqualogica, The Derma Co, and BBlunt. Honasa’s shares soared to an upper circuit of Rs 423.75, marking a nearly 30% rise from the listing price of Rs 328 per share.
In the same quarter, Honasa recorded a 21% rise in revenue, reaching Rs 496.1 crore, while its total expenditure escalated by 18% to Rs 463.9 crore year-over-year. Notably, other expenses accounted for approximately 58% of the company’s overall expenditure, totaling Rs 267.3 crore in the second quarter of the fiscal year.
On a half-yearly basis, Honasa Consumer’s net profit surged almost eightfold to Rs 55.4 crore compared to Rs 7.69 crore in the corresponding period of the previous year. Additionally, the revenue from operations for the first six months of 2023 hit Rs 960.5 crore, rising from Rs 722.7 crore in the previous year.
During the pre-placement offer held between October 30 and November 1, Honasa’s shares were offered within a price band of Rs 308-Rs 328. The offer, subscribed 7.61 times on the final day, saw significant institutional investor interest. Despite a slower start, the IPO received an overwhelming response on day three, with bids for 22 crore shares against an offer of 2.8 crore shares, according to data from Indian stock exchanges.
